NORTH DAKOTA INCENTIVES
North Dakota shows an average deal value of $2.56 million with 108 new jobs created per deal
CORPORATE INCOME TAX EXEMPTION
New corporations that qualify as primary sector businesses may pay $0 in corporate income taxes for the first five years of their existence in North Dakota, if they apply for and are granted an exemption through the State Board of Equalization. Significant expansions beyond the initial location of a primary sector business may apply for an additional five-year corporate income tax exemption.
PROPERTY TAX EXEMPTION
Personal property is exempt from taxation with the exception of certain oil and gas refineries and utilities in North Dakota. This means there is no property tax on items such as office equipment, inventory, accounts receivable or materials.
Local taxing authorities in North Dakota control property tax rates and exemptions. Any new or expanding business project may be granted a property tax exemption for up to five years.
Two extensions are available:
- Agricultural processors may be granted a partial or full exemption for up to five additional years.
- A project located on property leased from a government entity qualifies for an exemption for up to five additional years upon annual application by the project operator.
In addition to or in lieu of a property tax exemption, a company may negotiate payments in lieu of taxes for up to 20 years from the date of commencement of project operations.
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.
OTHER NORTH DAKOTA INCENTIVE PROGRAMS
- Beginning Entrepreneur Loan Guarantee Program
- Business Development Loan Program
- Export Enhancement Program
- PACE Program
- Industrial Development Bond Program
- Main Street Loan Program
- MATCH Program
- New Venture Capital Fund
- Value-Added Agriculture Equity Loan Program
- Wind Turbine Electric Generation Property Tax Reduction
- Income Tax Exemption
- Agricultural Commodity Processing Facility Investment Credit
- Angel Fund Investment Credit
- Biodiesel Tax Credit
- Biomass, Geothermal, Solar, or Wind Energy Credit
- Certified Nonprofit Development Corporation Investment Credit
- Internship Employment Credit
- Microbusiness Income Tax Credit
- Automation Credit
- SEED Capital Investment Credit
- Wage & Salary Credit
- Workforce Recruitment Credit
- Renaissance Zones
- Jobs Training Assistance
- Workforce 20/20