ND SB2261

Primary sector businesses may claim a nonrefundable income tax credit equal to 10% of costs for purchasing manufactured components or labor from prison industries, effective for taxable years beginning after December 31, 2024

Total credits available statewide are capped at $45,000 per calendar year; if claims exceed the cap, the tax commissioner prorates credits among claimants

Unused credits may be carried forward for up to five succeeding taxable years; credits cannot be combined with other income tax deductions or credits for the same purchases

Taxpayers must submit applications by January 31 each year with documentation including primary sector certification from the Department of Commerce and paid invoices for prison industries purchases

Legislative management shall conduct a 2025-26 interim study on prison industries workforce development programs, examining alignment with manufacturing and private sector industries to improve outcomes for individuals exiting the criminal justice system