North Dakota and Grand Forks offers businesses a favorable tax climate that promotes growth and opportunity. From traditional tax incentives to the innovative Renaissance Zones, North Dakota has much to offer. The following are the most popular incentives offered. For a complete list visit ND Tax Department or browse the ND Tax Incentives for Businesses publication.
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 Propterty 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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