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
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| Research Tax Credits |
For companies conducting qualified research activities
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| 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
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| 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
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