State Tax Credits to Know About & Application Deadlines
As part of our ongoing commitment to keeping clients informed, we are sharing a brief overview of select state tax credits and upcoming application deadlines.
State tax credits can provide meaningful tax savings for both businesses and individuals. While available credits vary by state, we’d like to highlight a few currently available in North Dakota. Some have upcoming deadlines and specific filing requirements, so please read further to see if any may apply to you.
North Dakota Automation Tax Credit
Application Deadline: January 31, 2026 (5 p.m. CT)
Who It’s For: Certified primary sector businesses investing in automation or robotics for manufacturing or animal agricultural processes in North Dakota.
Benefit: Income tax credit of up to 15% of qualifying equipment purchase or capital lease costs.
Why It Matters:
This credit helps offset the cost of automation investments that improve productivity, job quality, safety, and competitiveness.
Action Item:
Applications must be fully completed and submitted with all required documentation by the deadline. If you have questions about eligibility or the application process, please contact our office.
North Dakota Primary Residence Credit
Application Deadline: April 1, 2026
Who It’s For: North Dakota homeowners who own and occupy their home as their primary residence, including houses, mobile homes, townhomes, duplexes, condos, and homes held in trust.
Benefit: State property tax credit of up to $1,600 per qualifying household. Credit will be applied to your property tax statement.
Why It Matters:
The Primary Residence Credit helps reduce annual property tax costs for eligible homeowners, with no age or income limitations.
Action Item:
Eligible homeowners must submit the application by the deadline in order to receive the credit. Homeowners may submit the application directly using the original newsletter link or request this service as part of their 2025 income tax preparation.
North Dakota Research Expense Credit
Application Deadline: Claimed with North Dakota income tax filing (requires calculation and supporting documentation)
Who It’s For: Taxpayers conducting qualified research activities in North Dakota and incurring eligible research and experimental expenditures in excess of the North Dakota base amount.
Benefit: Income tax credit based on qualified research expenses (QRE). Unused credits may be carried back or forward, and limited transfer options may be available for qualifying companies.
Why It Matters:
This credit encourages research and development by helping offset state income tax liability and supporting innovation and growth.
Action Item:
The credit is claimed when filing North Dakota income tax returns and requires supporting documentation. Early evaluation can help maximize the available credit.
Other State Tax Credits
In addition to the credits highlighted above, North Dakota and many other states offer a variety of tax credits and incentive programs for individuals and businesses. Some credits are claimed as part of the tax return, while others require separate applications or advanced steps that occur outside the filing process.
If you have questions about credits you may qualify for—whether discussed above or otherwise—we are happy to help. Many benefits are best identified and planned for ahead of time. You can also view all the state credit information in the original newsletter.
Thank you for your continued trust. We truly appreciate the opportunity to work with you and support you through both current year filings and future planning. We look forward to continuing to support you and your financial goals.
Sincerely,
Busek Olson & Associates | Taxman | West Fargo Tax & Accounting
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