RESOURCES
TAX INCENTIVES
& CREDITS
These and more can be found at
gfmedc.com/business/stayexpand/incentives/
taxes-exemptions-credits
Angel Fund Investment
Credit
An individual, estate, trust, partnership,
corporation or limited liability company
(LLC) is allowed an income tax credit for
investing in an angel fund in North Dakota.
Automation Tax Credit
An individual, estate, trust, partnership,
corporation, or limited liability company
(LLC) is allowed an income tax credit for
purchasing machinery and equipment
for the purposes of automating a
manufacturing process in North Dakota.
Border Cities
Enterprise Zone
Qualifying businesses that locate or
expand in Dilworth or Moorhead are
eligible for tax reductions under the
Border Cities Enterprise Zone legislation.
Corporate Income Tax
Exemption
Newly established primary sector
businesses or expansions of existing
primary sector businesses are eligible for
a five-year exemption from North Dakota
state corporate income taxes. For business
expansion, the exemption applies to the
increase in corporate income attributable
to the expansion project and related to
North Dakota revenues.
No Personal Property
Tax
North Dakota exempts all personal
property from property taxation.
Property Tax Exemption
A qualifying project may receive a
complete or partial exemption from ad
valorem taxation for up to 10 years on
new or existing buildings or structures
used in the qualifying project. Land is not
exempted. Buildings in a tax increment
financing (TIF) district are not eligible for
the property tax exemption.
Sales & Use Tax
Exemption
North Dakota provides sales tax
exemptions for equipment and materials
used in manufacturing and other targeted
industries. A new or expanding plant
may be exempt from sales and use tax
on purchases of machinery or equipment
used for manufacturing, ag commodity
processing or recycling.
An expanding primary sector business
may also be eligible for an exemption
for purchases of computer and
telecommunications equipment that is
an integral part of the business. The
exemption does not extend to the
purchase of replacement equipment.
Seed Capital Investment
Tax Credit
An individual, estate, trust, partnership,
corporation or limited liability company is
allowed an income tax credit for investing
in a primary-sector business.
Workforce Recruitment
Credit
A business that employs extraordinary
recruitment methods to recruit and hire
employees for hard-to-fill positions in
North Dakota is eligible for a credit equal
to five percent of the compensation paid
during the first 12 consecutive months
to an employee hired to fill a hard-to-fill
employment position and is allowed in the
first year following the year in which the
employee completes the 12 consecutive
month employment period.