Definitions

The following definitions are only applicable in computing a taxpayer's federal income tax deduction pursuant to subdivision c of subsection 1 of North Dakota Century Code section 57-38-01.3: 1. "Apportionment factor" means a fraction, computed pursuant to North Dakota Century Code chapter 57-38, 57-38.1, or 57-59, used to divide business income of a multistate taxpayer among states. 2. "Federal" means the United States. 3. "Federal income tax deduction" means the adjustment provided for in subdivision c of subsection 1 of North Dakota Century Code section 57-38-01.3. 4. "Federal income tax liability" means the amount of federal income tax, excluding any federal alternative minimum tax, computed under chapter 1 of the Internal Revenue Code of 1986, as amended. 5. "Federal income tax ratio" means North Dakota taxable income divided by income relating to federal income tax accrued. 6. "Income relating to federal income tax paid" means total income less income relating to foreign tax credit. 7. "Income relating to foreign tax credit" means income directly attributable to either the foreign tax credit or the possessions credit. 8. "North Dakota taxable income" means income which has been apportioned to North Dakota pursuant to North Dakota Century Code chapters 57-38, 57-38.1, and 57-59; provided, however, that no adjustment should be made for the federal income tax deduction. 9. "Taxpayer" means a corporation that is required to file an income tax return in North Dakota. 10. "Total income" means the federal taxable income of those entities in the unitary group that are required to file a federal income tax return during the period in question, plus or minus the adjustments provided for in North Dakota Century Code section 57-38-01.3, with the exception of subdivisions c and f of subsection 1 of North Dakota Century Code section 57-38-01.3.