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HB 1107

A BILL for an Act to create and enact a new subdivision to subsection 2 of section 57-38-30.3 of the North Dakota Century Code, relating to an individual income tax deduction for a segal Americorps education award; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Karen Anderson and 5 co-sponsors

ND would allow a state income tax deduction equal to Segal AmeriCorps education awards included in federal income, preventing double taxation, for tax years after 12/31/2024.

Second reading, failed to pass, yeas 22 nays 25
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WeVote Research Nonpartisan
Bill Summary · HB 1107

Summary — HB 1107 (North Dakota)

A bill to create a state individual income tax deduction for Segal AmeriCorps education awards

Main purpose

HB 1107 would add a new subdivision to subsection 2 of NDCC § 57‑38‑30.3 to allow North Dakota taxpayers to reduce their state taxable income by the amount of a Segal AmeriCorps education award they received during the taxable year — but only to the extent that award was included in their federal taxable income.

Key provisions

  • Adds a new deduction in NDCC § 57‑38‑30.3(2) that reduces a taxpayer’s North Dakota taxable income by the amount of a Segal AmeriCorps education award disbursed under 42 U.S.C. § 12604 and received by the taxpayer in the taxable year.
  • The deduction applies only to the portion of the award that was included in federal taxable income (i.e., it prevents the state from taxing award amounts already taxed at the federal level).
  • Effective date: for taxable years beginning after December 31, 2024.

Who is affected

  • Primary beneficiaries: North Dakota residents (or filers subject to ND income tax) who received a Segal AmeriCorps education award during the taxable year.
  • State government/treasury: would likely see a reduction in individual income tax revenue proportional to the number and size of qualifying awards claimed as deductions.
  • Tax preparers and the Tax Department: would need to incorporate the new deduction into state filing forms and instructions, if enacted.

Fiscal and policy implications

  • Revenue effect: The bill would reduce individual income tax base and therefore lower state income tax receipts by an amount that depends on how many recipients claim the deduction and the size of awards. No fiscal estimate is included in the bill language itself.
  • Policy intent: prevents double taxation of federal AmeriCorps education awards at the state level and aligns state tax treatment with the federal inclusion rule specified in the bill.

Procedural status and timeline

  • Introduced: November 12, 2024 (Sixty‑ninth Legislative Assembly).
  • Effective date specified for tax years beginning after Dec. 31, 2024 (if enacted).
  • Legislative outcome: Failed to pass on second reading (vote recorded: yeas 22, nays 25). Because it did not pass, the bill did not become law.

Sponsors / authors (as filed in ND)

  • Introduced by Representatives Monson, K. Anderson, Hoverson, Richter, Swiontek; Senator Mathern.

If you want, I can:
- Draft the likely tax form line wording or statutory language to implement the deduction, or
- Produce a rough revenue estimate methodology (what data would be needed and how to estimate fiscal impact).

Compiled from official sources — confirm details with the bill’s official record.

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