Research Expense Credit:. A corporate income tax credit equal to a percentage of the excess of qualified research expenses in North Dakota over the base period is available for eligible businesses. Unused credits can be transferred or sold.
Wage and Salary Credit: A new North Dakota business is eligible to receive an income tax credit equal to 1% of wages and salaries paid during the first three tax years of operation, and .5% for the fourth and fifth tax years.
There are a variety of low interest financing options available through the North Dakota Public Finance Authority, as well as banks throughout the state, such as the North Dakota Development Fund, and the Pace Program.
Renaissance Zones: Businesses locating in any of the state’s designated Renaissance Zones are eligible to receive state income and local property tax exemptions for zone projects, as well as historical tax credits, available to approved zone projects.
North Dakota New Jobs Training Program: The state provides a variety of training programs in the form of loans and grants. Loans are repaid through state income tax withholding credits. The state also assists firms in recruiting, screening, and testing potential trainees.
Workforce 20/20: New or expanding businesses are eligible to receive a partial reimbursement for employee retraining and upgrade training to support the introduction of new technologies and work methods. The grants are a portion of the actual costs expended and identified in the contract.
Sales and Use Tax Exemptions: Electrical generating facilities, agricultural commodity processing facilities, manufacturing facilities, primary sector businesses (computer and telecommunication equipment), gas processing facilities, coal mining facilities, and oil refineries are exempt from sales and use tax.
Property Tax and Income Tax Exemptions: Certified primary sector new or expanding businesses may be granted a property tax exemption for up to 5 years. Certified primary businesses or tourism businesses may qualify for an income tax exemption for up to 5 years.
Last updated: April 2016