Legal Services and Access to Justice Tax Credit

Legal Services and Access to Justice Tax Credit. (a) A person may take cash contributions made during the tax year to qualifying nonprofit legal services organizations as a nonrefundable credit against the tax imposed by 4 CMC §§ 1301, 1302, 1303, and 1304 to the extent provided by this Section. No such credit shall be allowed for any amount deducted in determining taxable income under the NMTIT as shown on the taxpayer's return. The “tax imposed” for purposes of computing the credit under 4 CMC § 1308 is the tax net of any credit taken pursuant to this Section. (b) The maximum credit available in any one year under this Section and 4 CMC § 1208 combined shall be the lesser of the sum of the taxes imposed under 4 CMC §§ 1201–02 and 4 CMC §§ 1301–04, or $ 5,000. Provided that a qualifying entity shall not receive more than $200,000 tax credit within a tax year. (c) The term “qualifying nonprofit legal services organizations” under this Section has the same meaning as in 4 CMC § 1208(c). (d) To obtain the credit, the taxpayer must furnish to the Division of Revenue and Taxation the information prescribed in 4 CMC § 1208(d). (e) Funds received by qualifying nonprofit legal services organizations pursuant to this Section shall be expended solely for the purpose of providing free or low-cost legal assistance to low-income or underserved individuals within the Commonwealth of the Northern Mariana Islands. The recipient organization shall certify compliance with this requirement in a form and manner prescribed by the Division of Revenue and Taxation. (f) The qualifying recipient organization shall provide a report of the expenditure of the funds received to the presiding officers of the legislature within thirty (30) days after the end of each tax year. Source: PL 24-28, § 3 (Mar. 19, 2026).