TAX CREDITS
Corporate Income Tax Exemptions/Credits: A new business or a business expansion may be granted an income tax exemption of up to 100% for up to five years. Applications for the exemptions are subject to the approval of the State Board of Equalization..
Research Expense Credit: An individual, estate, trust, partnership, corporation, or limited liability company is allowed an income tax credit for conducting research in North Dakota. The credit is equal to a percentage of the excess of qualified research expenses in North Dakota over the base period research expenses. A business must be certified as a “qualified research and development company” before a taxpayer can elect to sell, transfer, or assign all or part of its unused Research and Experimental Expenditure Tax Credit.
SPECIAL ZONING
Renaissance Zones: Business 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.
TRAINING PROGRAMS
Customized Industrial Training: The state provides a variety of training programs in the form of loans and grants. Loans are repaid through state income tax withholding credits and direct grants requires a match from the employer. The state also assists firms in recruiting, screening, and testing potential trainees.
TAX EXEMPTIONS
Sales and Use Tax Exemptions: Electrical generating facilities, agricultural commodity processing facilities, manufacturing facilities, primary sector businesses (computer and telecommunication equipment), gas processing facilities, and oil refineries are exempt from sales and use tax.
LOCAL INCENTIVES
Local governments have the authority to provide additional incentives including property taxation for up to five years for a new or expanding business’ building facilities. In addition, more than 80 communities have in place a 1% sales tax that can be used as economic development revenue for staffing, marketing, loan programs and other development incentives. In addition to or instead of an exemption, local governments and any project operator may negotiate payments in lieu of property tax (PILOT) for a period of up to 20 years from the date project operations begin.
