North Dakota

North Dakota Extends and Amends Tax Credits

Automation Tax Credit Extended

North Dakota allows primary sector businesses to claim a tax credit against the purchase of machinery and equipment used in the automation of a manufacturing process. While this tax credit has been extended to the 2016 and 2017 tax years, the funding for the tax credit program has been reduced to $500,000 per year from the current $2M for the 2015 calendar year.

The automation tax credit program allows for a rollover of unclaimed tax credits until 2017. Qualifying purchases include machinery and equipment by means of a capital lease and are based upon fair-market value at the inception of the lease. The maximum credit allowed for all qualifying purchases by all taxpayers in a calendar year was reduced to $500,000.

Extension Energy Device Tax Credit

The energy tax credit for wind device installations has been extended until January 1, 2017 for devices commencing operation before January 1, 2015. The energy tax credit is five year income tax credit valued at 3% of the acquisition and installation costs for installing a biomass, geothermal, solar, or wind-energy device in North Dakota.

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