North Dakota · Automation / Equipment · ND-AUTO-001
Automation Equipment Tax Credit
Publication revised September 24, 2026. Sourcebook page 212.
Credit amount / calculation
15% of qualifying automation purchases or capital-lease value; statewide allocation may reduce the award.
Business fit and eligible activity
Especially relevant to mills adding scanning, optimization, robotics or other qualifying automation. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
A qualifying mill can use this credit for new or used automation or robotic equipment. Equipment must improve the manufacturing process and satisfy certification requirements.
Illustrative business benefit
$1.2 million of certified automation equipment x 15% = $180,000 before statewide proration and tax-liability restrictions. The credit applies to accepted equipment, not automatically to all electrical work, installation or software.
Timing / first action
Confirm primary-sector certification and equipment eligibility; preserve evidence of improved job quality or productivity. Apply by January 31 for purchases in the preceding calendar year.
Official sources
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Employers hiring qualifying apprentices can receive a state credit.
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Fixed facilities in designated zones may receive tax benefits after certification.
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Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.