What Incentives are Offered?

State income tax and local property tax incentives are offered through this program, and are available for up to eight years.  The North Dakota Office of State Tax Commissioner administers the state incentives and all applicants must receive a Certificate of Good Standing from that Office before submitting their applications.   Property tax incentives are administered locally by the City of Grand Forks.  

A Property or space may receive incentives only once in a thirty year time frame from the initial project completion. The incentive may be transferred to new owners during the eight-year eligibility period.

State Income Tax and City Property Tax* exemptions are available for the following project types:

Incentives Print out

New Construction

Purchase of new home for primary residency

•  State Income Tax credit - receive personal income tax credit up to $10,000 per year for 8 years
• City Property Tax exemption* - 8-year, 100% property tax exemption on the value added

Purchase of new home as an investment

• State Income Tax exemption - receive a 8-year exemption on income derived from the investment
• City Property Tax exemption* - 8 year, 100% property tax exemption on the value added

Purchase of new commercial structure

• State Income Tax exemption - receive a 8-year exemption on income derived from the investment
• City Property Tax exemption* - 8 year, 100% property tax exemption on the value added

Rehabilitation / Remodel

Qualified rehabilitation / remodel of primary residence - Cost of improvements must be at least 20% of the total taxable building value

• State Income Tax credit - receive personal income tax credit of up to $10,000 per year for five years
• City property Tax exemption* - 5 year, 100% property tax exemption on the value added

Qualified rehabilitation / remodel of commercial structure - Cost of rehab must be at least 50% of total taxable building value

• State Income Tax exemption - receive a 8-year exemption on income derived from the investment
• City property Tax exemption* - 8 year, 100% property tax exemption on the value added

Purchase with Major Improvement

Purchase of vacant commercial building with major improvements - Cost of improvements must be at least 20% of the total taxable building value, projects above 50% of the building value will be classified as a rehab project.

• State Income Tax exemption - receive a 8-year exemption on income derived from the investment
• City property Tax exemption* - receive full property tax exemption on value added by purchase and rehab investments for 8 years

Leases

Lease of commercial property

• State Income tax exemption - receive a 8-year exemption on business income derived from that site
• City Property taxes - N/A

 Leaseholder improvements

• State Income tax exemption - receive a 8-year exemption on business income derived from that site
• City Property taxes - N/A

Historical Preservation & renovation

• State Income tax credit - Tax credit pf 25% of investment with a maximum of $250,000 claimed in the year of project completion.  Any excess credit may be carried forward for 5 years.
• City property taxes - N/A

*Exemptions apply to building value only, not the land.