A corporation is allowed an income tax credit equal to 10% per year for five years of the direct costs incurred to adapt or add equipment to retrofit an existing facility or to construct a new facility in North Dakota to produce or blend diesel fuel containing at least 2% biodiesel or green diesel volume. “Biodiesel” means fuel meeting the specifications adopted by the American Society for Testing and Materials. “Green diesel” means a fuel produced from non-fossil renewable resources, including agricultural or silvicultural plants, animal fats, residue, and waste generated from the production, processing, and marketing of agricultural products, silvicultural products, and other renewable resources, which meets applicable American society for testing and materials specifications.
Qualifications
A corporation who has direct costs incurred to adapt or add equipment to retrofit an existing facility or to construct a new facility in North Dakota to produce or blend diesel fuel containing at least 2% biodiesel or green diesel volume. Property Tax Clearance Record form required.
Credit Amounts
The first taxable year in which the credit may be claimed is the taxable year in which the facility begins producing or blending biodiesel or green diesel fuel. Eligible costs incurred before the taxable year in which production or blending begins are considered in calculating the credit. The credit may not exceed the corporation’s tax liability in any year, but any unused portion of a taxable year’s credit may be carried forward for up to five taxable years. The maximum cumulative credit allowed to a taxpayer for all taxable years is limited to $250,000.
Application Process
Not Applicable.
How to Claim
If you're filing as a/an: | Claim the credit on: |
| Individual or Sole Proprietor | Not Applicable |
| C Corporation | Form 40, Corporation Income Tax Return Schedule TC |
| S Corporation | Not Applicable |
| Partnership | Not Applicable |
| Fiduciary | Not Applicable |