Research and Development Tax Credit

North Dakota has the most aggressive R&D tax credit in the nation: 25 percent of the first $100,000 of qualified research expenses in North Dakota over the base period research expenses in North Dakota, and eight percent of any amount above $100,000. 

A individual, estate, trust, partnership, corporation, or limited liability company may claim the credit. "Qualified research expenses" and "base period research expenses" are the same as defined in Internal Revenue Code Section 41.

Subject to certain conditions, a taxpayer may sell, transfer, or assign up to $100,000 of its unused tax credit to another taxpayer if the taxpayer selling the credit is certified by the Department of Commerce Division of Economic Development and Finance to be a primary sector business with annual gross revenues of less than $750,000 that conducts research after December 31, 2006 and has not previously earned or claimed the credit in North Dakota.

N.D.C.C. § 57-38-30.5