An individual, estate, trust, partnership, corporation, or limited liability company is allowed an income tax credit for employing extraordinary recruitment methods to recruit and hire employees for hard-to-fill positions in North Dakota.

The credit is equal to 5% of the compensation paid during the first 12 consecutive months to an employee hired to fill a hard-to-fill employment position and is allowed in the first year following the year in which the employee completes the 12 consecutive month employment period.

Eligibility

To be eligible for the credit the employer must pay an annual salary that is at least 125% of North Dakota's average wage and must have employed all of the following recruitment methods for at least six months to fill a position for which the credit is claimed:

• Contracted with a professional recruiter for a fee
• Advertised in a professional trade journal, magazine or other publication directed at a particular trade or profession
• Provided employment information on a website for a fee
• Paid a signing bonus, moving expense or atypical fringe benefits

In addition, if an employer claims the credit, an employee hired in a hard-to-fill position is allowed a deduction for a signing bonus, moving expenses, or atypical fringe benefits paid by the employer.

For more information, visit the North Dakota Office of State Tax Commissioner's Income Tax Incentives website.