ND HB1040

Primary sector businesses receive a nonrefundable income tax credit equal to 20 percent of the cost of manufacturing machinery and equipment purchased to automate manufacturing processes in North Dakota.

Qualifying purchases must demonstrate either improved job quality (5 percent increase in average wages or workplace safety improvement) or increased productivity (5 percent increase in output or units produced per automated line).

Credit cannot exceed the taxpayer's annual tax liability, but excess amounts may be carried forward for up to five succeeding taxable years.

Maximum of $1 million in aggregate credits allowed per calendar year; unclaimed credits carry forward to the next year and excess claims are prorated among claimants.

The act is effective for the first four taxable years beginning after December 31, 2018, and expires after that period.