A taxpayer is allowed an income tax credit for investing in a qualified agricultural commodity processing facility certified by the North Dakota Department of Commerce Division of Economic Development and Finance. An agricultural commodity processing facility includes livestock feeding, handling, milking, or holding operations that use, as part of its operation, a by-product produced at a biofuels production facility.
Qualifications
The agricultural commodity processing facility investment must consist of an exchange of cash or a fee simple interest in North Dakota real property for an equity (ownership) interest in the facility.
Credit Amounts
The credit is equal to 30% of the investment. No more than $50,000 of credits may be used in any year. Unused credit may be carried forward up to 10 years. A taxpayer is allowed no more than $250,000 of credits for all tax years. If the taxpayer is a passthrough entity, the credit is passed through to its owners based on their respective interests in the entity.
Application Process
Certification from the Department of Commerce.
How to Claim
If you're filing as a/an: | Claim the credit on: |
| Individual or Sole Proprietor | Schedule ND-1TC, Tax Credits |
| C Corporation | Form 40, Corporation Income Tax Return Schedule TC |
| S Corporation | Form 60, S Corporation Income Tax Return Schedule K |
| Partnership | Form 58, Partnership Income Tax Return Schedule K |
| Fiduciary | Form 38, Fiduciary Income Tax Return Schedule 38-TC |