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Office of State Tax Commissioner, Ryan Rauschenberger : State of North Dakota
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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
Biomass, Geothermal, Solar, or Wind Energy Credit
Certified Nonprofit Development Corporation Investment Credit
Internship Employment Credit
Microbusiness Investment and Employment Credit
Research Expense Credit
Wage & Salary Credit
Workforce Recruitment Credit

Seed Capital Investment Tax Credit

An individual, estate, trust, partnership, corporation, or limited liability company is allowed an income tax credit for investing in a business certified by the Department of Commerce Division of Economic Development and Finance.

An investment may consist of a direct cash payment, 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 45% of the investment. No more than $112,500 of the credit may be used in any year. An unused credit may be carried forward up to four tax years. In the case of a passthrough entity, such as a partnership or S corporation, or in the case of an angel fund, the credit is passed through to the entity's owners, or the fund's investors, in proportion to their respective interests.

Only the first $500,000 of eligible investments in the business are eligible for the tax credit. The total amount of tax credits allowed for investments made in all certified businesses in any calendar year is limited to $3.5 million.

See the following links for more information:

  • Certification as a qualified business-To obtain certification as a qualified business for purposes of the Seed Capital Investment Tax Credit Program, a business must complete and submit two application forms to the North Dakota Commerce Department’s Division of Economic Development and Finance: a primary sector certification application form and a seed capital qualified business certification application form. If a business has already obtained primary sector certification for this or another purpose, only the seed capital qualified business certification application is required.

    Questions relating to certification should be directed to the North Dakota Commerce Department’s Division of Economic Development and Finance as follows:

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