North Dakota · research and development · ND-RD-001
Research Expense Credit
Publication revised September 24, 2026. Sourcebook page 215.
Credit amount / calculation
Regular method: 25% of the first $100,000 of research expenses above the base and 8% of the excess above $100,000. A separate alternative simplified method is available.
Business fit and eligible activity
Qualified North Dakota research can generate a state credit. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.
Illustrative business benefit
With $200,000 of North Dakota qualified research expenses above the regular-method base, the credit is $100,000 x 25% + $100,000 x 8% = $33,000 before tax limits.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Identify the technical uncertainty and start contemporaneous project records before trying to calculate the credit.
Official sources
- North Dakota Office of State Tax Commissioner - Research Expense (nd.gov)
- North Dakota Office of State Tax Commissioner - Apprentice Tax Credit (nd.gov)
- North Dakota Office of State Tax Commissioner - Automation Tax Credit (nd.gov)
- North Dakota Tax Commissioner - Business Tax Credits (nd.gov)
- North Dakota Office of State Tax Commissioner - Research Expense (ohio.gov)
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