Agricultural Commodity Processing Facility Investment Tax Credit: Income tax credit equal to 30% of investment in an agricultural commodity processing facility in North Dakota. No more than $50,000 of the allowable tax credit may be used per tax year and there is a $250,000 tax credit limit for all tax years. An agricultural commodity processing facility includes a livestock feeding, handling, milking or holding operation that uses a by-product manufactured at biofuel production facilities.
Research Expense Credit: Eligible businesses may qualify for a corporate income tax credit based on qualified research expenditures made in the State. For expenditures above the base amount, the credit is equal to 25% of the first $100,000 and 8% for the additional expenses over $100,000. Different rates applied for prior years and research commenced prior to 2007.Unused tax credits may be carried back up to three years or carried forward up to fifteen years. Certain business may be eligible transfer up to $100,000 of unused credits to another eligible business.
Workforce Recruitment Credit: Eligible businesses may qualify for a one-time tax credit equal to 5% of salary of qualified recruited position. Unused credits can be carried forward up to 4 years.
21st Century Manufacturing Tax Credit: Provides a 20% tax credit on equipment and technology used to automate a manufacturing process.
There are a variety of low interest financing and grant options available through: the Division of Community Services, the Agricultural Products Utilization Commission, the North Dakota Public Finance Authority, The North Dakota Development Fund, and The Bank of North Dakota.
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.
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 Exemptions: A new or expanding, primary sector businesses may be granted a property tax exemption for up to 5 years. Certain business may negotiate with local authorities for a PILOT (payment in lieu of taxes) for up to 20 years.
Income Tax Exemptions: Certified primary businesses or tourism businesses may qualify for an income tax exemption for up to 5 years.
Last updated: May 2019