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.
HB 1107 would amend North Dakota’s individual income tax law to allow a deduction for a Segal AmeriCorps Education Award received by a taxpayer, but only to the extent that the award was included in federal taxable income. In practical terms, the bill would reduce state taxable income for AmeriCorps members who receive this education award, aligning state tax treatment with the portion of the award that is taxed federally.
The deduction would be added to section 57-38-30.3 of the North Dakota Century Code and would apply to taxable years beginning after December 31, 2024. The bill is narrowly targeted and does not change the structure of the state income tax generally; it creates a specific subtraction for a particular federal service-based education benefit.
If enacted, HB 1107 would create a new state income tax deduction for qualifying Segal AmeriCorps education awards, lowering taxable income for affected taxpayers and reducing state tax liability for some AmeriCorps participants. It would amend North Dakota’s income tax code by adding a new deduction provision to section 57-38-30.3, but only for amounts included in federal taxable income. Because the bill failed, no change was made to current state tax law.
The available record shows no committee transcript or recorded vote details, so there is no documented debate to indicate broad support or opposition. The bill’s introduction suggests a favorable view toward recognizing AmeriCorps service through tax relief, but the final status of the measure was unsuccessful, as it failed on March 7, 2025. Without hearing records, the overall sentiment can only be described as limited and inconclusive, with the bill not advancing.
No specific points of contention are documented in the provided materials. Based on the bill’s subject, potential concerns would likely have centered on whether the deduction should be granted for a relatively narrow class of taxpayers, the revenue impact on the state, and whether AmeriCorps awards should receive special treatment in the tax code. However, the transcript and vote history provided do not identify any legislators or stakeholders explicitly raising those issues.