North Dakota offers a range of business incentives designed to promote economic development, job creation, and investment within the state.  The state's incentive programs are aimed at attracting businesses to key sectors such as energy, technology, manufacturing, and agriculture.  North Dakota’s business-friendly environment and low tax burden make it an attractive destination for companies looking to expand or relocate.  Below are some of the key business incentives available in North Dakota.

North Dakota Economic Development Loan Fund (EDLF)

Overview

The EDLF is a program designed to assist businesses with funding for expansion, equipment, and facility improvements.  It provides low-interest loans to support projects that result in the creation or retention of jobs in North Dakota.

Eligibility

• The business must be a for-profit company located in North Dakota.

• The business must create or retain jobs in the state.

• The project must align with the state’s economic development priorities, including manufacturing, technology, and agriculture.

Incentive Value

• The EDLF offers low-interest loans that can cover up to 50% of a project’s cost.

• The maximum loan amount is generally determined by the size of the project and the expected job creation.

Application Process

Businesses must apply through the North Dakota Department of Commerce (DOC), providing details on the project’s goals, expected outcomes, and financial projections.

North Dakota Angel Fund Tax Credit Program

Overview

The Angel Fund Tax Credit Program provides tax credits to investors who invest in qualified start-up companies in North Dakota.  The program encourages private investment in early-stage businesses, particularly in high-growth industries such as technology and life sciences.

Eligibility

• The business must be a start-up company in a qualifying industry, such as technology, life sciences, or energy.

• The business must meet the criteria of a North Dakota-based, privately-held company that is seeking early-stage investment.

Incentive Value

• Investors can receive tax credits equal to 45% of their investment in a qualified business.

• The maximum credit is $300,000 per individual investor per year.

Application Process

Businesses must apply to DOC to become eligible for the program.  Investors must submit their investment details to receive the tax credits.

North Dakota Renewable Energy Tax Credit

Overview

North Dakota offers a Renewable Energy Tax Credit to encourage the development of renewable energy projects, including wind, solar, and biomass.  This credit is designed to help businesses offset the costs associated with the installation of renewable energy systems.

Eligibility

• The business must invest in renewable energy systems such as wind turbines, solar panels, or biomass generators.

• The renewable energy systems must meet specific efficiency standards and contribute to North Dakota’s energy goals.

Incentive Value

• The tax credit provides up to 35% of the cost of renewable energy systems, with specific limits for each technology type.

• The credit can be used to offset state taxes, including income and sales taxes.

Application Process

Businesses must apply to DOC, providing documentation of the renewable energy investment and installation costs.

North Dakota Workforce Enhancement Program

Overview

The North Dakota Workforce Enhancement Program provides financial assistance to businesses that invest in workforce training and development. This program helps businesses build a skilled workforce by offsetting training costs for employees in high-demand sectors.

Eligibility

• The business must be located in North Dakota.

• The business must offer workforce training that addresses the needs of the state’s economy, particularly in fields such as manufacturing, healthcare, and technology.

Incentive Value

• The program offers grants to offset the cost of employee training, including instructor fees, materials, and training facility costs.

• Grants can cover up to 50% of the total training costs.

Application Process

Businesses must apply through the North Dakota Job Service Division, providing a detailed workforce training plan and budget.

North Dakota Workforce Recruitment Tax Credit

Overview

The North Dakota Workforce Recruitment Tax Credit provides tax incentives to businesses that hire out-of-state workers for new positions.  The program is aimed at addressing skill shortages in key sectors and attracting talent to North Dakota.

Eligibility

• The business must hire out-of-state employees to fill new or existing positions.

• The employees must meet the state’s wage standards and work in high-demand sectors such as manufacturing, healthcare, and technology.

Incentive Value

• Businesses can receive a tax credit of up to $5,000 per employee hired, with a maximum of $25,000 in credits per year.

• The credit is applied to state corporate income taxes.

Application Process

Businesses must apply to DOC, submitting employee hire details and proof of relocation.

North Dakota Historic Preservation Tax Credit

Overview

The North Dakota Historic Preservation Tax Credit provides incentives for businesses to rehabilitate historic properties in the state.  This credit supports the preservation of North Dakota’s architectural heritage while fostering local economic development.

Eligibility

• The business must be rehabilitating a designated historic property.

• The property must be listed on the National Register of Historic Places or located within a qualified historic district.

Incentive Value

• The program offers a tax credit of up to 30% of the rehabilitation costs for eligible properties.

• The credit can be applied to state income taxes.

Application Process

Businesses must apply through the North Dakota State Historical Society, submitting a rehabilitation plan and documentation of expenses.

North Dakota Property Tax Exemption for New and Expanding Businesses

Overview

North Dakota offers property tax exemptions to businesses that make significant capital investments in new or expanded facilities.  This program is designed to attract new businesses and encourage existing businesses to expand in the state.

Eligibility

• The business must make a substantial investment in property improvements, including land, buildings, and machinery.

• The business must meet local job creation and wage standards.

Incentive Value

• The exemption provides a reduction or complete abatement of property taxes on the newly invested capital.

• The exemption period varies based on the size of the investment and the location of the business.

Application Process

Businesses must apply to the North Dakota local government, providing documentation of their capital investment and job creation projections.

North Dakota Tax Increment Financing (TIF)

Overview

TIF allows businesses to finance infrastructure improvements, such as roads and utilities, by using future increases in property taxes generated by the development.  This program is designed to support urban renewal and development projects in North Dakota.

Eligibility

• The business must invest in new development or redevelopment within a designated TIF district.

• The project must contribute to economic development and result in increased property tax revenue.

Incentive Value

• TIF allows businesses to retain a portion of the increased property tax revenue generated by their development to finance the cost of infrastructure improvements.

• The financing can cover up to 100% of the infrastructure costs, depending on the project's scope.

Application Process

Businesses must apply to the North Dakota local government and work with them to establish a TIF district for their project.