Tax Incentives and Support

Tax incentives and support available to businesses in Valley City, ND:

• Up to 100% property tax exemption (except land) for a maximum of 5 years.
• Value added agricultural processing - up to 100% for up to 5 additional years.
• Project located on property leased from a government entity - up to five additional years upon annual application by the project operator.
• PILOT (Payment in Lieu of Taxes) Program - in addition to, or in place of, the property tax exemption; amount of payment and the period of time (not to exceed twenty (20) years from the date project operations begin) are negotiated between project operator and municipality.

Up to 100% and 5 years exemption from state tax on income generated. Other tax incentives are also available for doing business or investing in business and technology in North Dakota.

Income tax exemptions
Income tax incentives

Requests for approval to buy machinery, equipment, or goods without paying tax or requests for refunds of tax paid on goods that qualify for exemption must be made in writing to the State Tax Commissioner, 600 East Boulevard Avenue, Bismarck, ND  58505. Phone: (701) 328-2770.

Sales and Use Tax Exemptions from the North Dakota State Tax Commissioner

• A Job Training Incentives program is available that helps qualifying new or expanding business fund the training of new employees.
• The North Dakota New Jobs Training Program provides incentives to businesses that are creating new employment opportunities through business expansion and relocation to the state. Funds are generated through the ND state income tax withholding and can be used for training or other purposes.
• Workforce 20/20 is a grant program to assist North Dakota businesses and industries in retraining and upgrading worker's skills to meet demands of new technologies and work methods.
Renaissance Zone

The City of Valley City adopted a Renaissance Zone Development Plan in July 2000 to enhance business and residential development in the downtown area.

• Property and income tax exemptions of 100% for five years.
• Tax credit allowed for income tax purposes or financial institution tax purposes for making an investment in the preservation or renovation of zone project property consisting of historic property and for investment in a Renaissance Fund Corporation.
• The credit is equal to 50% of the amount invested during the tax year.
• If the credit exceeds the taxpayer’s tax liability for the tax year in which the investment is made, the amount of the credit in excess of the tax liability may be carried forward and used in the five tax years following the tax year in which the investment is made.

For further information, or for an application, contact the City of Valley City at (701) 845-1700.