Tax Exemption

We have one of the most favorable tax climates in the nation and offer special tax exemptions for your business.

• Property Tax Exemption - Abatement of up to 100% of local real property taxes for 5 years are available to any new or expanding business (10 years for an ag processing facility). In addition or instead of an exemption, local governments and any project operator may negotiate payments in lieu of property taxes for a period of up to 20 years.
• Income Tax Exemption - A new or expansion project in a primary sector business or tourism qualifies for an income tax exemption for up to five years.
• Personal Property Exemption - North Dakota has no personal property tax
• Wage and Salary Credit - A corporation engaged in assembling, fabricating, manufacturing or ag processing, doing business in ND for the first time, may take an income tax credit equal to 1% of all wages and salaries paid for the first three years of operation and ½% of wages and salaries paid in the fourth and fifth years. A corporation qualifies for the credit if the corporation did not receive an Income Tax Exemption
• Sales Tax Incentives - Machinery or equipment that a new or expanding plant uses primarily for manufacturing or agricultural processing may be exempt from sales and use taxes. In addition, construction materials used to construct an agricultural processing facility may be exempt from sales and use taxes.