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600 E. Boulevard Ave.
  Bismarck, ND 58505-0599
  328.7088 phone
  701.328.3700 fax
  877.328.7088 toll-free

Income Tax Incentives

Ag Commodity Processing Facility Investment Tax Credit
Angel Fund Investment Credit
Automation Credit
Biodiesel Tax Credits
Certified Nonprofit Development Corporation Investment Credit
Internship Employment Credit
Microbusiness Investment and Employment Credit
Research Expense Credit
Seed Capital Investment Credit
Wage & Salary Credit
Workforce Recruitment Credit

Biomass, Geothermal, Solar, or Wind Energy Credit

Note: This credit expires on December 31, 2014, and is not allowed for devices installed on or after January 1, 2015.

A corporation is allowed an income tax credit for installing a biomass, geothermal, solar, or wind energy device in a building or on property owned or leased in North Dakota. The credit is equal to 3% of the cost of acquisition and installation and is allowed in each of the first five tax years, starting with the year in which installation is completed. A credit allowed to a corporation included in a consolidated North Dakota income tax return may be used to reduce the aggregate tax liability of all corporations included in the return. If a corporation holds an interest in a partnership (or a limited liability company treated like a partnership) that installs a device, the credit is passed through to the corporation in proportion to its interest in the entity.

An individual, estate, or trust is allowed an income tax credit for installing a geothermal energy device in a building or on property owned or leased in North Dakota. To qualify, the device must be installed after December 31, 2008. The credit is equal to 3% of the cost of acquisition and installation and is allowed in each of the first five tax years starting with the year in which installation is completed. If an individual, estate, or trust holds an interest in a passthrough entity, such as a partnership or S corporation, that installs a geothermal energy device after December 31, 2008, the credit is passed through to the individual, estate, or trust in proportion to its interest in the entity.

For devices installed after September 30, 2008, an unused credit may be carried forward up to ten tax years; however, the carryforward period is twenty tax years for a wind device installed after September 30, 2009 and before January 1, 2012. (For devices installed before October 1, 2008, different carryforward periods apply.)

If ownership of a device is transferred immediately upon completion of installation, and the device is fully operational, the credit transfers to and may be claimed by the purchaser of the device.

  • [Reference: N.D.C.C. 57-38-01.8]

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