Agricultural Business Investment Tax Credit

An individual, estate, trust, partnership, corporation or limited liability company is allowed an income tax credit for investing in an agricultural commodity processing facility in North Dakota.

An agricultural commodity processing facility includes a livestock feeding, handling, milking, or holding operation that uses as part of its operation a by-product produced at a biofuels production facility. A biofuels production facility is a North Dakota business that produces diesel fuel containing at least 5% biodiesel, produces corn-based or cellulose-based ethanol, or crushes soybeans or canola.

The credit is equal to 30% of the investment with no more than $50,000 of the credit being used in any one year. An unused credit may be carried forward up to ten years. A taxpayer is allowed no more than $250,000 in credit for all tax years.