New/Expanding Business Corporate Income Tax Exemption

About this programme

The New/Expanding Business Corporate Income Tax Exemption is a North Dakota income tax exemption available to a qualifying primary sector or tourism business for up to five years. It is authorized under N.D.C.C. Chapter 40-57.1 and administered by the State Board of Equalization, with the North Dakota Department of Commerce Division of Economic Development and Finance reviewing whether an applicant qualifies as primary sector or tourism.

'Primary sector' means a business that adds value to a product, process, or service in a way that produces new wealth in North Dakota. 'Tourism' means 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 the state.

How it works

A qualifying new primary sector or tourism business can pay $0 in North Dakota corporate income tax for up to five years.

A business is not eligible if it already received a property tax exemption under tax increment financing, has an outstanding tax obligation or a recorded lien for delinquent state or local tax, or if the exemption would foster unfair competition or endanger an existing business.

The North Dakota Department of Commerce's own tax incentives page separately states that a primary sector business undertaking a significant expansion beyond its initial location may apply for an additional five-year corporate income tax exemption; the Office of State Tax Commissioner's published incentives guide, however, does not describe an extension mechanism for this specific income tax exemption (it describes two available extensions for the separate property tax exemption instead). Confirm directly with the State Tax Commissioner or Department of Commerce whether an extension currently applies to the income tax exemption.

Who can apply

The business must qualify as a primary sector business (adds value to a product, process, or service, creating new wealth in North Dakota) or a tourism business that is a destination attraction, under the Department of Commerce's certification.

The business must be new, or an existing business expanding its North Dakota operations.

The business is disqualified if it already has a tax-increment-financing property tax exemption, has an outstanding tax obligation or lien for delinquent state or local tax, or if granting the exemption would foster unfair competition or endanger an existing business.

How to apply

1. Apply to the State Board of Equalization, care of the State Tax Commissioner.
2. File the application no later than one year after operations begin at the new business or expansion.
3. The Department of Commerce Division of Economic Development and Finance reviews the application for primary sector or tourism eligibility.
4. The business must give notice to competitors, as prescribed by the State Board.
5. At a public meeting, the State Board considers the application and any testimony, then grants or denies the exemption.

Frequently asked

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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.