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 Bismarck, ND 58503
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Contact: Julie Fedorchak

(701) 391-1140




BISMARCK, N.D. – North Dakota Governor John Hoeven signed legislation today making North Dakota’s research and development tax credits the best in the nation.


The legislation, which takes effect Aug. 1, increases the state’s R&D tax credit to a rate of 25 percent for the first $100,000 of qualified research expenses and 20 percent for amounts over $100,000 in qualified research expenses. These rates will apply to companies conducting new research in North Dakota and will last for 10 tax years. After 10 tax years, the rates will go to 25 percent for the first $100,000 of qualified research and 8 percent for amounts exceeding $100,000.


For companies that have previously earned the R&D tax credit in North Dakota, the rate will increase over a four-year period to a 25/18 percent rate.  These companies are limited to $2 million in annual R&D tax credits. The new law also allows small companies conducting new research in North Dakota to transfer $100,000 in R&D tax credits.


Hoeven said research and development is increasingly important to companies in their efforts to remain competitive and stay ahead of the growth curve in their industry.


North Dakota is serious about developing the best possible business environment for growth,” Hoeven said. “This is another tool to make our state stand out as a great place for business success.”


Bobcat Company operates globally out of headquarters in West Fargo, N.D. Vice President of Global Operations Dennis Schneider said the new R&D tax credit will be valuable for Bobcat.


“It’s increasingly important for us to have our suppliers located near our manufacturing facilities, and this provides additional incentive to do that,” Schneider said. “If all other things are equal, this tips the scale in favor of North Dakota.”


Brian Walters, president of the Fargo-Moorhead Economic Development Corporation, said by establishing the most aggressive incentive for research and development North Dakota is adding more value to the state’s significant investments in world-class intellectual and research capacities.


“The expansion of North Dakota’s R&D tax credit complements state, federal, university, and local strategies to create an even stronger environment for our existing companies,” Walters said. “This legislation will help position our communities to compete for corporate research and development functions on a global scale.”


Rhode Island has the next most attractive rate at 22.5 percent.




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