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Contents

he North Dakota Renaissance Zone Act

Renaissance Zone Act ................. This page

(“Act”) was enacted by the 1999 North Dakota Legislature. It authorizes a

North Dakota city to apply to the state for designation of part of the city as a

Developments ............................... This page

renaissance zone. It is a tool that North Dakota communities can use to redevelop

Where to get help ......................... This page

and revitalize a portion of their communities to attract and retain new residents and

General information ...................................... 1

businesses. Two North Dakota agencies are responsible for the administration of

the Act: the Commerce Department’s Division of Community Services and the

• Available tax incentives ...................... 1

Office of State Tax Commissioner. The Act provides income, financial institution,

• Definitions ........................................... 1

and property tax incentives to individuals and businesses for making qualified

• Eligibility for tax incentives .................. 1

investments in a North Dakota renaissance zone.

• Zone project approval letter ............... 2

• Pass-through entity ............................ 2

• Priority of exemptions and credits ...... 3

Cities with zones

• Financial institution

According to the information provided by the North Dakota Commerce Department’s

minimum payment ............................... 3

Division of Community Services on its Web site as of December 31, 2003, the following

General and specific instructions for:

cities have a state-approved renaissance zone:

Part 1: Business or investment

Bismarck

Hankinson

Valley City (RFO)

income exemption ....................... 3

Buffalo

Hazen

Wahpeton

Part 2: Business purchase or

expansion tax credit .................... 7

Carrington

Jamestown (RFO)

Watford City

Casselton (RFO)

Lisbon

West Fargo (RFO)

Part 3: Single-family residence

tax credit ..................................... 8

Fargo (RFO)

Milnor

Part 4: Historic property preservation

Grand Forks

Minot

or renovation tax credit ............. 10

Part 5: Renaissance fund organization

The “(RFO)” following a city’s name indicates that the city has established a renaissance

investment tax credit ................. 11

fund organization as part of its renaissance zone plan. See the definition of “renaissance

Part 6: Exemption and credit

fund organization” on page 1.

summary ................................... 12

Instructions for calculating the

2003 legislative changes

zone apportionment factor ......................... 13

Following is a summary of the changes made to the North Dakota Renaissance Zone Act

by the 2003 North Dakota Legislature.

Where to get help

Renaissance zone size

If you have questions about the tax

Effective August 1, 2003, the renaissance zone law was changed to provide an exception

incentives under the Act or the comple-

to the 20-block limit on the size of a renaissance zone. If a city has a population greater

tion of Schedule RZ:

than 5,000, the 20-block limit may be increased up to 35 blocks at the rate of one block for

Call

each additional 5,000 in population. In addition, the provision allowing a one-time

Individual income tax

(701) 328-3450

adjustment of an established zone’s boundary to replace a nonproductive portion with

Corporation income &

another equal and contiguous area was changed to allow more than one adjustment at

financial institution

any time during the zone’s life. HB 1457; S.L. 2003, ch. 350, §§ 1 and 2; amending

taxes

(701) 328-2046

N.D.C.C. §§ 40-63-03(1)(c), 40-63-03(7), and 40-63-03(9).

Speech or hearing impaired—call Relay

Renaissance fund organization

North Dakota at 1-800-366-6888

Effective August 1, 2003, the renaissance zone law covering the renaissance fund

E-mail

organization (RFO) was changed to: (1) Allow an RFO to use its funds to invest

Individual income tax—

anywhere within the boundaries of any city in North Dakota that has a designated

individualtax@state.nd.us

renaissance zone; (2) Provide that an RFO receiving investments for which the additional

Corporation income and financial

$2.5 million in tax credits are allowed may use no more than 50 percent of the investments

institution taxes—

to invest in an area located outside a renaissance zone. For this purpose, “additional $2.5

corptax@state.nd.us

million in tax credits” means the amount of tax credits that become available upon

exhaustion of the $2.5 million in tax credits originally allowed by law when the

Write

renaissance zone law was enacted in 1999; (3) Remove the rule that prohibited an RFO

ND Office of State Tax Commissioner

from accepting new investments if, during the immediately preceding four years, the RFO

600 E. Boulevard Ave., Dept. 127

did not use at least 50% of its funds for qualified purposes; and, (4) Remove the rule that

Bismarck, ND 58505-0599

prohibited investments in an RFO from qualifying for the additional $2.5 million of tax

Web site

credits if (a) the RFO was created before the original $2.5 million of tax credits is

exhausted and (b) the RFO did not use at least 65% of its funds for qualified purposes.

SB 2259; S.L. 2003, ch. 351, § 1; amending N.D.C.C. § 40-63-07.

Log - Schedule Rz Instructions Renaissance Zone Act Exemptions And Tax Credits - North Dakota Office Of State Tax Commissioner - 2003 Page 2

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