As used in this chapter, unless the context otherwise requires: 1. "Director" means the director of the department of commerce division of economic development and finance. 2. "Passthrough entity" has the same meaning as in section 57-38-01. 3. "Primary sector business" has the meaning provided in section 1-01-49 but does not include an agricultural commodity processing facility as defined under section 57-38.6-01. 4. "Qualified business" means a business other than a real estate investment trust which is a primary sector business that: a. Is incorporated or its satellite operation is incorporated as a for-profit corporation, passthrough entity, or joint venture; b. Is in compliance with the requirements for filings with the insurance commissioner under the securities laws of this state; c. Has North Dakota residents as a majority of its employees in the North Dakota principal office or the North Dakota satellite operation; d. Has its principal office in this state and has the majority of its business activity performed in this state, except sales activity, or has a significant operation in North Dakota that has or is projected to have more than ten employees or one hundred fifty thousand dollars of sales annually; and e. Relies on innovation, research, or the development of new products and processes in its plans for growth and profitability. 5. "Taxpayer" means an individual, estate, or trust or a corporation, passthrough entity, or an angel fund. The term does not include a real estate investment trust.
57-38.5-02. Certification - Investment reporting by qualified businesses - Maximum investments in qualified businesses. 1. The director shall certify whether a business that has requested to become a qualified business meets the requirements of section 57-38.5-01. The director shall establish the necessary forms and procedures for certifying qualified businesses. 2. A qualified business may apply to the director for a recertification. Only one recertification is available to a qualified business. The application for recertification must be filed with the director within ninety days before the original certification expiry date. The recertification issued by the director must comply with the provisions of subsection 3. 3. A certification letter must be issued by the director to the qualified business. The certification letter must include: a. The certification effective date. b. The certification expiry date. The expiry date may not be more than four years from the certification effective date. 4. The maximum aggregate amount of qualified investments a qualified business may receive for all tax years is limited to five hundred thousand dollars under this chapter. The tax credit allowed on qualified investments in a qualified business must be allowed to taxpayers in the chronological order of the taxpayer's qualified investments as determined from the forms filed under section 57-38.5-07. The limitation on investments under this subsection may not be interpreted to limit additional investment by a taxpayer for which that taxpayer is not applying for a credit.