Income Tax Incentives
Agricultural Commodity Processing Facility Investment Tax Credit
An individual, estate, trust, partnership, corporation, or limited liability company is allowed 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.
An agricultural commodity processing facility includes a livestock feeding, handling, milking, or holding operation that uses as part of its operation a by-product produced at a biofuels production facility.
An investment may consist of a direct cash payment, a transfer of a fee simple interest in North Dakota real property, or a direct transfer of cash from a retirement plan for which the investor controls where the plan's assets are invested.
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. In the case of a passthrough entity, such as a partnership or S corporation, the credit is passed through to its owners in proportion to their respective interests in the entity.
See the following links for more information:
- Certification as a qualified business – To obtain certification as a qualified agricultural commodity processing facility for purposes of the tax credit, a business must complete and submit an agricultural commodity processing facility certification application form to the North Dakota Commerce Department’s Division of Economic Development and Finance.
Questions relating to certification should be directed to the North Dakota Commerce Department’s Division of Economic Development and Finance as follows:
ND Commerce Department
Division of Economic Development and Finance
PO Box 2057
Bismarck, ND 58503
Phone: (701) 328-5300
Web site: http://www.business.nd.gov
- Program provisions – For a rundown of the Program’s provisions, see Agricultural Commodity Processing Facility Investment Tax Credit Program – Program provisions.
- Once certified, an agricultural commodity processing facility must report each qualified investment it receives by completing and submitting the Ag commodity processing facility investment reporting form
- Credit rates, limitations, and other features by tax year – Because of changes in the law, the applicable rate, limitations, and other features of the tax credit have changed over the years. For a summary of the applicable rate, limitations, and other features on a year-by-year basis, see Agricultural Commodity Processing Facility Investment Tax Credit Program – Rates, limitations, and other features of the tax credit by tax year.
- North Dakota agricultural commodity processing facility investment tax credit statute (law) – For the text of the law, see N.D.C.C. ch. 57-38.6.