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Tax Incentives

North Dakota and Grand Forks offers businesses a favorable tax climate that promotes growth and opportunity. The following are the most popular incentives offered. 

Property Tax Exemptions

For new or expanding business projects

Up to 5 years property tax exemption
Up to 10 years exemption for ag processing businesses
Abatements most commonly provided on a declining, straight-line 5-year 100%, 80%, 60%, 40%, 20% basis over the period of exemption.
Partnership in Assisting Community Expansion (PACE) Program Interest-subsidy program for business expansions that create new jobs
Administered by Bank of North Dakota
No-interest deferred loan of up to $135,000 provided by City of Grand Forks which will leverage a Bank of North Dakota grant of up to $250,000
Collectively reduce the interest paid on a commercial loan for acquisition of land, buildings or equipment.
Economic Development Administration Revolving Loan Fund (EDA–RFL)

Direct loan of up to $500,000 to an expanding primary sector business that creates new jobs

For the purchase of land, buildings and equipment, or for working capital
Provided by City of Grand Forks
Loan terms must follow standard lending principals and can carry an interest rate as low as 4%
Biomass, Geothermal, Solar, & Wind Energy Credit

For a corporation installing biomass, geothermal, solar, or wind energy device in a building or on property in ND

Income tax credit of 3% of the cost of acquisition and installation in each of the first five tax years for a total of 15%
Internship Credit Tax credit for employing an individual under an internship program equal up to 10% of the compensation paid to an intern
Research Tax Credits

For companies conducting qualified research activities

Tax credits of 25% for the first $100,000 and 20% for amounts over $100,000 in research expenses
North Dakota offers the most attractive research expense tax credit rates in the US
Workforce Recruitment Credit

Income tax credit for employing extraordinary recruitment methods to hire employees for hard-to-fill employment positions

Personal Property Tax Exemption

North Dakota exempts all personal property from property taxation except that of certain oil and gas refineries and utilities

New Business Property Tax Exemption

Any new or expanding business project may be granted a property tax exemption for up to 5 years

Sales Tax Exemption

For a new or expanding plant

May exempt machinery or equipment from sales and use taxes if it is used primarily for manufacturing or agricultural processing or is used solely for recycling

     · A sales and use tax exemption is allowed for purchases of computer and telecommunications equipment that are an integral part of a primary sector business

         · Construction materials used to construct an agricultural processing facility are exempt from sales and use taxes

        · A sales and use tax exemption is allowed for purchasing building materials, production equipment and other tangible personal property used in the construction of wind-powered electrical generating facilities between July 2001 and January 2011

New Business Income Tax Exemption

For a corporation doing business in North Dakota for the first time may take an income tax credit equal to:

  • 1% of wages and salaries paid during the tax year for each of the first three years of operation
  • 1⁄2% of wages and salaries paid during the tax years for the fourth and fifth years
New or expanding qualified companies may apply to the North Dakota Industrial Commission for a 5 year State Corporate Income Tax exemption
Renaissance Zones Businesses and individuals may qualify for income and property tax exemptions and credits for purchasing, leasing or making improvements to real estate property located in a North Dakota renaissance zone

Income or financial institution tax credit is also allowed to taxpayers who invest in a renaissance fund organization established by a renaissance zone

For a complete list visit ND Tax Department.

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© Grand Forks Region Economic Development Corporation
600 DeMers Avenue, Suite 501 • Grand Forks, ND 58201
(T) 701.746.2720 • (F) 701.746.2725 • info@grandforks.org

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