Schedule RZ: Schedule RZ - Renaissance Zone Income Exemption and Tax Credits (2025) (2025)
North Dakota · ND Tax Commissioner · Used for tax years 2025
North Dakota Schedule RZ reports Renaissance Zone business or investment income exemptions and tax credits for 2025. It includes credits for business purchases or expansions, single-family residences, and historic property preservation or renovation, along with amounts received t
Who files this form
Use 2025 Schedule RZ to claim the following Renaissance Zone benefits on Form ND-1, 38, 40, 58, or 60:
- Business or investment income exemption.
- Business purchase or expansion tax credit.
- Single-family residence tax credit.
- Historic property preservation or renovation tax credit.
- Renaissance fund organization (RFO) investment tax credit.
- Nonparticipating property owner tax credit.
The schedule also includes lines for certain exemptions and credits received through a passthrough entity and reported on a North Dakota Schedule K-1.
What you'll need
Have your taxpayer name and Social Security number or FEIN ready. Depending on the benefit you claim, you may also need:
- Final zone project approval letter: Attach a copy for the project entries in Parts 1, 2, 3, 4, and 6. The form uses information from this letter, including applicable project numbers, transaction types, start dates, and approved utility-change costs.
- North Dakota Schedule K-1: Use it for passthrough exemption or credit amounts. Parts 4, 5, and 6 specifically require a copy for passthrough credits.
- RFO Investment Reporting Form: Attach the copy received from the RFO for an investment reported in Part 5.
- Supporting statements: Attach an asset-identification statement for Part 1, line 9e, if applicable. Parts 4, 5, and 6 also require statements for the current-year credit and carryforward lines.
Depending on the part completed, you will need information about property transactions, completion or occupancy dates, business income and property values, building square footage, preservation or renovation costs, or RFO investments.
How to file
- Complete the applicable parts of Schedule RZ for your exemption or credits.
- If you have multiple zone projects, complete a separate Schedule RZ for Parts 1 through 6 for each project. Combine the amounts in Part 7 on only one Schedule RZ.
- Transfer the Part 7 amounts to the return or schedule listed on page 5. For Form ND-1, enter the income exemption from Part 7, line 1c, on Schedule ND-1SA, line 4, and the total credit from Part 7, line 7, on Schedule ND-1TC, line 2.
- Attach all five pages of Schedule RZ and the required supporting attachments to your North Dakota income tax return.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Leaving out pages: The form repeatedly says to attach all five pages to your North Dakota income tax return.
- Including unrelated business figures: In Part 1, lines 8 through 17, include only the figures for the business that owns or leases the zone project property.
- Completing unnecessary lines for a K-1-only exemption: If Part 1 is used only to claim an income exemption from a North Dakota Schedule K-1, skip lines 1 through 17 and enter the exemption on line 18.
- Using business-income lines for investment-only property: If the property is used solely for investment purposes, skip Part 1, lines 8 through 15, and go to line 16.
- Overlooking the credit election: Fill in the circle in Part 2, line 1, only if eligible and irrevocably electing the business purchase or expansion credit instead of the business income exemption.
- Combining projects too early: Complete Parts 1 through 6 separately for each project, then combine totals in Part 7 on only one schedule.
Questions people ask
What is the maximum annual income exemption shown on the form?
Part 7 lists a maximum exemption of $500,000 per year. Line 1c uses the smaller of the tentative exemption and that maximum.
How is the business purchase or expansion credit calculated for 2025?
Part 2 says to multiply eligible months by $166.67 if there are fewer than 12 eligible months. Otherwise, enter $2,000. The form directs you to the instructions before determining eligible months.
How is the single-family residence credit calculated for 2025?
Part 3 says to multiply eligible months by $833.33 if there are fewer than 12 eligible months. Otherwise, enter $10,000. The form directs you to the instructions before determining eligible months.
How is the historic property credit calculated?
Part 4 multiplies the amount paid to preserve or renovate qualifying historic property by 25%, then uses the smaller of that result and the $250,000 maximum per project. The amount claimable for 2025 is entered separately on line 10, which refers to the instructions and requires a statement.