Limitations on adjustments available on form ND-2 or form 37

An individual who files North Dakota individual income tax return form ND-2 or form 37 for the current year may make the following adjustments only if form ND-2 or form 37 was filed for the applicable prior year: 1. Refunds of state and local income taxes may only be deducted on form ND-2 or form 37 if they were reported on federal form 1040 for the current year and if form ND-2 or form 37 was filed for the year in which the state and local income taxes were added back. 2. The deduction provided for in subdivision b of subsection 3 of North Dakota Century Code section 57-38-01 for the amount of accelerated cost recovery system depreciation disallowed in a prior year may only be allowed on form ND-2 or form 37 if form ND-2 or form 37 was filed for the prior year when the disallowance of accelerated cost recovery system depreciation occurred.