HB 1168 Summary

• Creates a 15% nonrefundable income tax credit for primary sector businesses purchasing new or used automation and robotic equipment to upgrade manufacturing or animal agricultural processes in North Dakota.

• Establishes a $3 million annual aggregate credit limit with $500,000 each designated for first-time claimants in animal agriculture and manufacturing automation, with unused portions available to other claimants.

• Requires taxpayers to demonstrate improved job quality (5% wage increase or safety improvement) or increased productivity (5% increase in output or units produced) within one year of claiming the credit.

• Allows credits to be carried forward up to five years if tax liability is insufficient and permits consolidated returns and pass-through entities to claim credits at the entity level.

• Effective for taxable years beginning after December 31, 2022, with House passage 82-8 and unanimous Senate approval 47-0.