- Agricultural Commodity Processing Facility Investment Tax Credit provides individuals, estates, trusts, partnerships, corporations, or limited liability companies an income tax credit for investing in an agricultural commodity processing facility in North Dakota certified by the Department of Commerce Division of Economic Development and Finance. The credit is equal to 30% of the investment. No more than $50,000 of the credit may be used in any year. An unused credit may be carried forward up to ten years. A taxpayer is allowed no more than $250,000 in credits for all years.
- Automation Credit provides an income tax credit to a primary sector business for purchasing new or used automation and robotic machinery and equipment for the purpose of upgrading or advancing a manufacturing process. The upgrade or advancement must improve job quality or increase productivity. A purchase includes acquisition of qualifying machinery and equipment by means of a capital lease agreement. The credit is equal to 20% of the cost of the approved machinery and equipment.
- Biodiesel Tax Credit provides corporations an income tax credit for adapting or adding equipment to retrofit a facility or to construct a new facility in North Dakota that either (1) produces or blends biodiesel fuel or green diesel fuel or (2) crushes soybeans or canola. The credit is equal to 10% of the direct costs incurred, and is allowed in each of five tax years, starting with the tax year in which the production, blending, or crushing begins. An unused credit may be carried forward up to five tax years. A corporation is allowed no more than $250,000 of credits for all tax years.
- Research Expense Credit provides individuals, estates, trusts, partnerships, corporations, or limited liability companies 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 amount in North Dakota. “Qualified research expenses” and “base amount” have the same meaning as defined under federal income tax law (I.R.C. § 41). The applicable percentage is 25% for the first $100,000 of excess expenses in a tax year. For excess expenses over $100,000 in a year, the applicable percentage is 8% for all taxpayers.
- Renaissance Zone Credit provides businesses and individuals with one or more tax incentives for purchasing, leasing, or making improvements to real property located in a North Dakota renaissance zone. A renaissance zone is a designated area within a city that is approved by the Department of Commerce Division of Community Services. The tax incentives consist of a variety of state income tax exemptions and credits, and local property tax exemptions.
- A sales tax exemption is available for (1) construction materials used to construct an agricultural commodity processing facility and (2) the purchasing of tangible personal property incorporated into a system to compress, gather, collect, store, transport or inject carbon dioxide for use in enhanced recovery of oil or natural gas or in secure geological storage in North Dakota. To qualify it must be a new project or an expansion of an existing project.
- A sales and use tax exemption may be granted for purchasing tangible personal property used to construct or expand a facility in North Dakota to extract or process byproducts associated with coal gasification.
- A sales and use tax exemption and refund may be granted for machinery or equipment used to produce coal from a new mine in North Dakota. The exemption for each new mine is limited to the first $5 million of sales and use tax paid. The exemption extends to replacement machinery or equipment if the capitalized investment in the new mine exceeds $20 million.
- For primary sector businesses other than manufacturers and recyclers, a sales and use tax exemption is allowed for purchases of computer and telecommunications equipment. The equipment must be an integral part of a new primary sector business or create an economic expansion of an existing business, and the primary sector business must be certified by the Department of Commerce Division of Economic Development and Finance. The exemption does not extend to the purchase of replacement equipment.
- Owners, operators, and tenants of a qualified data center may be granted a sales tax exemption for enterprise information technology equipment and computer software purchased for use in a newly constructed or substantially refurbished qualified data center. The data center in North Dakota must: (1) be completed or substantially refurbished after December 31, 2020; (2) consist of 15,000 sq. ft. or more with 50% or more, of area being used for data processing; (3) be located on a single or contiguous parcel of land; (4) have sophisticated fire suppression and prevention systems and enhanced security features; and (5) be certified by the Office of State Tax Commissioner.
- A sales and use tax exemption may be granted for purchasing building materials, qualified production equipment, environmental upgrade equipment, and other tangible personal property used in the construction or expansion of coal-powered electrical generating facilities. The facility must convert beneficiated coal or coal from its natural form into electrical power and have at least one single electrical generation unit with a capacity of 50,000 kilowatts or more.
- A sales and use tax exemption may be granted for purchasing building materials, qualified production equipment, environmental upgrade equipment, and other tangible personal property used in the construction or expansion of an electrical generating facility other than a coal or wind-powered facility. The facility must produce electricity for resale or for consumption in a business activity and have at least one single electrical generation unit with a capacity of 100 kilowatts or more.
- A sales tax exemption may be granted for purchasing tangible personal property used to construct a chemical or fertilizer processing facility and any integral component located at the facility site and necessary for the plant’s operation. The plant must produce fertilizer, chemicals, or chemical derivatives from natural gas, natural gas liquids, or crude oil components for wholesale or retail sale. The plant owner must receive from the North Dakota Department of Environmental Quality by June 30, 2023, an air quality permit or a notice that the air quality permit application is complete.
- A sales and use tax exemption may be granted for purchasing building materials, equipment, and other tangible personal property used in the expansion or construction of a gas processing facility. Also, tangible personal property used to construct or expand a system to compress, process, collect, or gather gas recovered from an oil or gas well in North Dakota may qualify for an exemption. In addition, purchases of machinery, equipment, and related facilities for environmental upgrades that exceed $100,000 and that reduce emissions, increase efficiency, or enhance reliability of equipment may also qualify for an exemption.
- A sales and use tax exemption may be granted for purchasing tangible personal property used to construct or expand a processing facility in North Dakota that produces liquefied natural gas.
