North Dakota Opens Automation Tax Credit Program Portal for Applications

The North Dakota Department of Commerce announced last week that the Automation Tax Credit (ATC) Program Portal is now open for applications.

The program is designed to support primary sector businesses investing in automation that enhances productivity, efficiency and competitiveness in manufacturing and animal agricultural processes.

The Automation Tax Credit, authorized under N.D.C.C. § 57-38-01.41, allows eligible taxpayers to receive an income tax credit for the purchase or capital lease of machinery and equipment used to automate manufacturing or animal agricultural operations in North Dakota. 

ATC will provide a credit of up to 15% of qualifying costs, with a total annual allocation of $3 million. Specific amounts are set aside for first-time claimants and animal agricultural processors.

New this year, all applications must be fully completed and submitted with all required supplemental documentation by 5 p.m. (cst) on January 31st of next year. Applications requiring additional clarification will be granted a single seven-business-day window to provide the necessary information for reconsideration.

If the requested information is not submitted within that timeframe, the affected invoice line items will be denied. Incomplete applications will be deemed ineligible and will not be processed.

Applicants are encouraged to allow up to three working days to receive a portal invitation before beginning the application.

To qualify, applicants must be certified as a primary sector business by Commerce, demonstrate that the automation investment adds value, improves job quality or increases output—such as through at least a 5% increase in wages, safety or production—and ensure that the automation or robotic equipment is located and operated within North Dakota.

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Completed applications, including Supplement A and all supporting documentation, must be submitted through the Automation Tax Credit Program Portal by the deadline. Businesses can access detailed program information, eligibility requirements, and the application portal at Automation Tax Credit New Commerce Portal.