About this programme
The Automation Tax Credit is a North Dakota Department of Commerce tax incentive that offsets the cost of automation and robotic equipment for certified primary sector businesses in manufacturing or animal agriculture. It exists to encourage those businesses to invest in equipment that raises output or improves job quality.
A primary sector business, as the Department of Commerce defines it, is one that adds value to a product, process, or service through knowledge or labor in a way that creates new wealth for the state. The credit is funded from a fixed annual statewide pool, so it is capped and can be prorated across all approved claimants in a given year.
How it works
The credit covers up to 15% of the cost of new or used automation and robotic equipment. The statewide pool is capped at $3 million per calendar year, with $500,000 of that reserved for first-time claimants in animal agriculture and another $500,000 reserved for first-time claimants in manufacturing. If approved requests exceed the $3 million cap in a given year, the Department prorates the credits.
Qualifying equipment must improve job quality, defined as at least a 5% wage increase or a 5% improvement in workplace safety, or increase output by 5% or more per automated line over a given time period. Costs for delivery, training, assembly, installation, financing interest, sales tax, optional warranties, and other incidental costs do not qualify.
Unused credit can be carried forward for up to 5 tax years. Passthrough entities such as partnerships and S corporations pass the credit through to their owners proportionally.
Who can apply
The business must be certified as a primary sector business by the Department of Commerce, both at the time it owned the equipment and at the time it applies.
The equipment must be automation or robotic equipment used for manufacturing or animal agriculture that meets the job-quality or output-increase thresholds described above.
How to apply
- Purchase and take delivery of the qualifying automation or robotic equipment.
- Complete the application with all required documentation, using the application instructions and worksheet provided by the Department.
- Submit the fully completed application by January 31 at 5:00pm CST of the year following the equipment's delivery; incomplete applications are deemed ineligible.
- Respond to any clarification request within the single 7-business-day window the Department allows.
Documents you’ll typically need
- Completed Automation Tax Credit application
- Supplement A worksheet (SFN 60289)
- Supporting documentation of equipment cost and delivery
Frequently asked
How much of my equipment cost does the credit cover?
Up to 15% of the cost of new or used automation and robotic equipment, subject to the statewide annual cap.
What if more businesses apply than the $3 million cap allows?
If approved requests for the year exceed the $3 million set-aside, the Department prorates the credits among applicants.
What counts as qualifying equipment?
Automation or robotic equipment for manufacturing or animal agriculture that raises output by 5% or more per automated line, or improves job quality through a 5% wage increase or 5% safety improvement. Delivery, training, installation, financing interest, and sales tax are not covered.
When is the application deadline?
By January 31 at 5:00pm CST of the year following the equipment's delivery. An incomplete application is deemed ineligible.
Can I use the credit if I don't owe enough tax in one year?
Yes. Unused credit can be carried forward for up to 5 tax years, and passthrough entities can pass the credit to their owners proportionally.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.