NORTH DAKOTA INCENTIVES SUMMARY

North Dakota Development Fund (NDDF)
Up to $3 million in financial assistance to new, expanding, or relocating companies investing in real property, site improvements and infrastructure, and as a guarantee to fund working capital. The NDDF provides "gap" financing not available from traditional sources. Funding methods are available on a long- or short-term basis and include direct loans, participating loans, subordinate debt, and equity investments.

Property Tax Exemption
New or expanding companies may qualify for a property tax exemption for up to five years. Agricultural processors and projects located on leased governmental properties may qualify for an additional five years. As an alternative, payments in lieu of property tax (PILOT) for up to 20 years may be negotiated with local governments.

Workforce Recruitment Tax Credit
A tax credit is available to companies that hire new employees to positions classified as hard to fill. The tax credit is equal to five percent of wages paid during the first year of employment. Unused tax credits may e carried forward for up to four years. Wages must be at least 125 percent of the state average wage and must have been unsuccessful in filling the position for the prior six months.

Job Training Assistance
Training assistance is available for new jobs created. The withholding tax withheld from wages paid to the new employees is used to pay training expenses.