Tax Exemptions

Property Tax Exemption

Any new or expanding business project may be granted a property tax exemption for up to five years. To qualify, a project must be a new or expanded revenue-producing enterprise. All buildings, structures or improvements used in, or necessary to, the operation of the project qualify. Land does not qualify for an exemption.

In addition to, or instead of, an exemption, local governments and any project operator may negotiate payments in lieu of property tax for a period of up to 20 years from the date project operations begin. Please see the PILOT program page for more information.

Corporate Income Tax Exemption

Newly established companies or expansions of current primary sector companies are eligible for up to a 5-year exemption from North Dakota state corporate income taxes. For business expansions, the exemption applies to the increase in corporate income attributable to the project and related to North Dakota revenues. For more information, visit the ND Office of State Tax Commissioner website.

CDC/504 Loan Program

This U.S. Small Business Administration loan program provides financing for major fixed assets such as equipment or real estate.

  • Funding limits (SBA share of loan) are $1,000,000 or 40% of project cost, whichever is less. 
  • Interest rate on SBA share is U.S. Treasury note plus 1%. 
  • SBA will take a second mortgage and requires owner equity of a minimum of 10%. 
Learn more at the Small Business Administration website.