APPLICATION FOR QUALIFICATION OF MACHINERY OR EQUIPMENT FOR THE PURPOSE OF AUTOMATING MANUFACTURING PROCESSES
NORTH DAKOTA DEPARTMENT OF COMMERCE
SFN 60289 (01/2021)
This application requires your Federal Identification Number or Social Security Number. It is under the authority of N.D.C.C. ss 57-38-0136 that
you are required to provide this information. The Federal Identification Number or Social Security Number will be used for identification and qualification purposes,
and will be provided to the North Dakota Tax Department. Failure to provide this information may cancel your qualification for this tax credit.
Purpose of Application
Use this form to apply for qualification of machinery or equipment used to automate manufacturing processes for purposes of the automation income tax credit under N.D.C.C. § 57-38-01.36.
Qualifications
To be eligible for the credit, the following requirements must be met:
• The business must be certified as a “primary sector” business: A primary sector business means a business certified by the Department of Commerce which,
through the employment of knowledge or labor, adds value to a product, process or service that results in the creation of new wealth. The business must be certified as a
"primary sector" business through the North Dapartment of Commerce when taking title to the equipment, as well as at the time of application.
• The business must purchase manufacturing machinery and equipment for the purpose of automating manufacturing processes in North Dakota, which is approved by
the Department of Commerce. “Manufacturing machinery and equipment for the purpose of automating manufacturing processes” means new or used automation and robotic equipment.
• The automation of the manufacturing processes must improve job quality or increase output, which is reported to the Office of State Tax Commissioner.
See the definitions for Supplement A on for more information.
• Expenditures approved for the automation income tax credit may not be used in the calculation of any other income tax deduction or credit.*
Instructions for Qualified Business
On the Supplement A page, describe in detail each new or used automation or robotic equipment acquired for the purpose of automating manufacturing processes.
Describe the current manufacturing process and how each purchase will automate the process and impact job quality or output. Include invoices or other
documentation evidencing the item purchased, the delivery date and receipt or proof of purchase.
Incomplete applications may be deemed ineligible and not processed.
Completed applications, including Supplement A must be submitted by January 31st, of the year following the purchase of the equipment. (For example, an application for equipment purchased
in 2020 must be submitted by January 31, 2021.) However, if January 31st falls on a weekend or holiday, you will need to register online by the 31st and will be given the next business day
to complete and submit your application.
If you have any questions or wish to withdraw an application, Call: 701-328-5300 or Email: NDEDF@nd.gov.
For more information on the Automation Tax Credit, please visit: http://www.legis.nd.gov/cencode/t57c38.pdf.
*Taxpayers choosing to pursue other income tax deductions or credits for the approved equipment must withdraw their automation income tax application before January 31.
(For example, an application for equipment purchased in 2019 must be withdrawn before January 31, 2020.) If an application is not withdrawn, the equipment purchases
resulting in a credit will be ineligible for any other income tax incentives. (Please note that accessing the automation credit does not prohibit taxpayers
from also applying for sales tax exemptions.)
Consistent with North Dakota law, tax payer information will be kept confidential within the North Dakota Department of Commerce
and the North Dakota Office of State Tax Commissioner. In compliance with the Federal Privacy Act of 1974, Public Law 93-579, the disclosure of the taxpayer’s
social security number or federal employer identification number (FEIN) on this form is mandatory and is required under Subsection 2 of North Dakota Century Code § 44-04-28.
Failure to provide this information will result in withdrawal of the application.