Medium
A primary sector or tourism business may qualify for an income tax exemption for up to five years.
Medium
Qualifications
“Primary sector” refers to a business that adds value to a product, process, or service that produces new wealth in North Dakota. “Tourism” refers to a tourism-related business that is a destination attraction. Eligibility is limited to a new business or to an existing business that expands its operations in North Dakota. A business is not eligible for exemption if one of the following applies:
- The business received a property tax exemption under tax increment financing.
- There is an outstanding tax obligation or recorded lien for any delinquent state or local tax.
- Exemption fosters unfair competition or endangers existing business.
Application Process
The business must apply to the State Board of Equalization (State Board), c/o State Tax Commissioner and be processed through the following approval steps:
- The application must be filed no later than one year after the commencement of operations within the new business or expansion.
- The Department of Commerce Division of Economic Development and Finance reviews the application for primary sector or tourism eligibility.
- The business must provide notice to competitors as prescribed by the State Board.
- At a public meeting, the State Board considers the application and any testimony, and grants or denies the exemption.
How to Claim
If you're filing as a/an: | Claim the credit on: |
| Individual or Sole Proprietor | Schedule ND-1SA, Statutory Adjustments |
| C Corporation | Form 40, Corporation Income Tax Return |
| S Corporation | Form 60, S Corporation Income Tax Return |
| Partnership | Form 58, Partnership Income Tax Return |
| Fiduciary | Form 38, Fiduciary Income Tax Return |