By Scout Nelson
The North Dakota Department of Commerce has announced that the Automation Tax Credit (ATC) Program Portal is now accepting applications. The program helps primary sector businesses invest in automation to improve productivity, increase efficiency, and strengthen competitiveness in manufacturing and animal agriculture.
Businesses planning to claim tax credits for qualifying automation investments made in 2026 must submit completed applications and all required documents by 5 p.m. Central Time on February 2, 2027. The deadline is part of the department's official 2026–2027 program timeline.
What is the Automation Tax Credit Program
The Automation Tax Credit Program provides financial support to eligible North Dakota businesses that invest in equipment to automate manufacturing or animal agricultural processes. The program operates under North Dakota Century Code Section 57-38-01.41.
Eligible taxpayers can receive an income tax credit for purchasing or entering into a capital lease for qualifying machinery and equipment. These investments must help automate approved business processes within North Dakota.
The program offers a tax credit of up to 15% of qualifying costs. It has a total annual allocation of $3 million. A portion of the available funds is reserved for first-time claimants and businesses involved in animal agricultural processing.
By supporting automation, the program aims to help businesses increase output, improve workplace conditions, and remain competitive. Automation can help companies complete certain tasks more efficiently, improve production processes, and make better use of their resources.
Who Can Apply for the Tax Credit
Businesses must meet specific conditions to qualify for the program. The requirements help ensure that tax credits support investments that provide clear benefits to North Dakota's economy and business operations.
Applicants must meet these three main requirements:
- Primary sector certification: The business must be certified as a primary sector business by the North Dakota Department of Commerce.
- Measurable business improvements: The automation investment must add value, improve job quality, or increase output. Examples include improvements of at least 5% in wages, workplace safety, or production.
- Equipment location and use: The automation or robotic equipment must be located and operated within North Dakota.
Businesses should review these requirements before applying. They should also confirm that their investments and supporting records meet the program's rules.
Application Deadline and Required Documents
The application portal is open, and businesses seeking credits for qualifying 2026 investments can begin preparing their submissions.
All applications and required supporting documents must be submitted through the official Automation Tax Credit Program Portal by 5 p.m. CT on February 2, 2027.
Applicants should provide complete and accurate information. Incomplete applications are considered ineligible and will not be processed. Businesses should review their application forms, invoices, and other supporting documents before submitting them.
The department may request additional information if an application needs clarification. Applicants receive one seven-business-day period to provide the requested details for reconsideration. If they fail to submit the information within that period, the affected invoice line items will be denied.
This process makes it important for businesses to check their applications carefully and respond promptly to requests from the department.
Allow Time for Portal Access
The Department of Commerce advises applicants to allow up to three working days to receive a portal invitation before starting the application process.
Businesses should plan ahead to avoid delays, especially as the deadline approaches. Preparing the necessary documents early can help applicants complete their submissions on time.
Applicants should also ensure that their equipment costs and business information are clearly documented. Meeting the deadline alone does not guarantee approval, as each application must satisfy the program's eligibility and documentation requirements.
How Businesses Can Apply
Businesses can find program details, eligibility rules, application instructions, and portal access through the North Dakota Department of Commerce website.
The official application portal is available at:
https://commerceportal.nd.gov/Automation-Tax-Credit-New/
Eligible businesses should review the available information before beginning the process. They should confirm their primary sector certification, assess how their automation investments improve business performance, and gather all required supporting documents.
Photo Credit: pexels-nataliya-vaitkevich
Categories: North Dakota, Business, Rural Lifestyle