ND HB1166

Amends North Dakota Century Code section 40-63-04 to modify the business or investment income tax exemption for renaissance zone projects involving residential, public utility infrastructure, or commercial property.

Taxpayers are exempt from income tax on zone project business or investment income for five taxable years beginning with the date of purchase, lease, or completion of rehabilitation.

Limits the maximum annual income exempt from tax to five hundred thousand dollars, with the limit applied to the sum of all exempt income from the taxpayer's business and investment interests in all zone projects.

For zone projects consisting of physical expansion of existing buildings, the exempt income is limited to an amount equal to the ratio of added square footage divided by total square footage after expansion, multiplied by the year's income from the building.

Effective for zone projects approved after July 31, 2013.