Renewable Energy Tax Credit (North Dakota)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Renewable Energy Tax Credit|
|Incentive Type||Corporate Tax Credit|
|Applicable Sector||Commercial, Industrial, Agricultural|
|Eligible Technologies||Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Geothermal Heat Pumps, Anaerobic Digestion, Renewable Fuels, Fuel Cells using Renewable Fuels|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||15% (3% per year for five years)|
|Carryover Provisions||Varies by technology and installation date (see below)|
|Eligible System Size||Not specified|
|Maximum Incentive||Not specified|
|Program Administrator||North Dakota Department of Commerce|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
North Dakota offers a corporate income tax credit for the cost of acquiring and installing a geothermal, solar, biomass, or wind energy system in a building or on property owned or leased by the taxpayer in North Dakota. For systems installed after December 31, 2000, and before January 1, 2015, the credit is equal to 3% per year for 5 years of the actual cost of acquisition and installation of the system.
The installation costs do not include costs of redesigning, remodeling or otherwise altering the structure of a building in which the renewable energy system is installed. If an eligible renewable energy system is a part of a system that uses other means of energy, only the portion of the total system directly attributable to the cost of the renewable energy system is included in determining the credit amount.
In general, if the amount of credit exceeds the taxpayer’s income tax liability, the excess may be carried over to each of the 5 succeeding taxable years. However, any excess tax credits earned for wind energy systems installed after September 30, 2008, and before January 1, 2012, may be carried over to each of the 20 succeeding taxable years. For geothermal, solar, or biomass systems installed after September 30, 2008, and wind energy devices installed after December 31, 2011, any excess may be used as a credit carryover to each of the 10 succeeding taxable years.
A pass-through entity that installs an eligible system in or on a property it owns or leases is considered to be the taxpayer. The amount of the credit allowed with respect to the entity's investments is determined at the pass-through entity level and must be passed through to the corporate partners, shareholders, or members proportionally.
For eligible systems installed after December 31, 2006, if system ownership is transferred at the time installation is complete and the system is fully operational, the purchaser of the device is eligible for the tax credit under this section. Subsequent purchasers of the device are not eligible for the credit.
|Contact Name||Public Information - State Tax Commissioner|
|Department||Office of the State Tax Commissioner|
|Address 2||600 East Boulevard Ave.|
|Place||Bismarck, North Dakota|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||ND Century Code 57-38-01.8|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.