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.
