Bill > SB2261

This bill creates a prison industries workforce development income tax credit for primary sector businesses in North Dakota, allowing them to claim a nonrefundable tax credit of 10% for purchasing components or labor from prison industries, with an annual aggregate credit limit of $45,000. Businesses must apply to the tax commissioner by January 31st each year, providing details about their purchases, and must be designated as a primary sector business by the department of commerce. The credit can be carried forward for up to five years if it exceeds the taxpayer's current tax liability, and it can be used by corporations filing consolidated returns or pass-through entities, with credits allocated proportionally to partners, shareholders, or members. Additionally, the bill mandates a legislative management study during the 2025-26 interim to examine prison industries and workforce development programs for incarcerated individuals, focusing on how these programs can align with manufacturing and private sector industries to support positive outcomes for individuals exiting the criminal justice system. The tax credit provisions will be effective for taxable years beginning after December 31, 2024.

Budget and Finance, Business and Industry

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo2261.html