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HB 1332

Revenue and taxation; income tax credit; definition; credit amounts; requirements; effective date.

2025 Regular Session Introduced by Justin Humphrey

Creates a $30 million Value-Added Agriculture Production Facility Incentive Program to reimburse infrastructure costs for one or few very large ND-based projects (>$350M) targeting

Second Reading referred to Rules
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Bill Summary · HB 1332

Summary — HB 1332 (North Dakota): Value‑Added Agriculture Facility Incentive Program

Status: Filed with Secretary of State 04/28 (Introduced Nov. 14, 2024). Bill amends NDCC §4.1‑01.1‑07, adds authority for a targeted value‑added facility grant program, provides a $30 million transfer, includes an expiration (June 30, 2029) and an emergency clause.

Purpose / Intent

To create a targeted incentive within the existing Agriculture Diversification and Development Fund to attract and support very large, new value‑added agriculture production facilities in North Dakota by reimbursing infrastructure and site costs and leveraging private/regional agricultural investment.

Key provisions

  • Agriculture Diversification & Development Fund

    • Continues the fund; authorizes the Bank of North Dakota (BND) and the Agriculture Commissioner to use moneys for loans, buydowns, grants and the new facility incentive program.
    • The agriculture diversification and development committee (ADDC) designates allocations among loans, buydowns, grants and incentive funding.

  • Value‑Added Agriculture Production Facility Incentive Program

    • Total grant award funding for the program is capped at $30,000,000.
    • Eligible facility requirements (all must be met):
    • Located in North Dakota.
    • New construction on an industrial‑ready site with access to existing municipal infrastructure.
    • Capital investment of at least $350,000,000 and leverage regional producer capital.
    • Have a competing offer from at least one other Midwestern state.
    • Produce a new agricultural product or a variant that increases domestic supply and market diversification.
    • Estimated economic contribution of at least $20,000,000 when fully operational (based on a Bank analysis).
    • Grant uses: reimbursement of infrastructure, site acquisition, or capital expenditures necessary for construction (examples: natural gas, electricity, roads, water/wastewater lines, stormwater conveyance, rail).
    • Payment schedule:
    • 50% of award reimbursed upon issuance of a certificate of occupancy.
    • Remaining 50% reimbursed when the facility reaches 50% of production capacity.

  • Financing mechanics and contingencies

    • The Bank of North Dakota may extend a line of credit of up to $30,000,000 to the Agriculture Commissioner to support grants under this program; interest at prevailing rates for ND governmental entities.
    • The commissioner may access the line of credit through June 30, 2029. Borrowed amounts must be transferred into the fund; commissioner must request a deficiency appropriation from the Legislative Assembly to repay the line of credit.
    • Annual audit requirement for the fund; BND may retain up to 0.5% of outstanding loans as a servicing fee.

  • Transfer and timing

    • Office of Management and Budget ordered to transfer $30,000,000 from the Strategic Investment and Improvements Fund to the Agriculture Diversification and Development Fund during the 2025–27 biennium (July 1, 2025 – June 30, 2027).
    • The Act is time‑limited: effective through June 30, 2029 (after which it is ineffective).
    • Emergency clause included (enables immediate effect on approval).

Who is affected

  • Potential beneficiaries: developers of very large, new value‑added agriculture production facilities (meets $350M+ threshold), regional agricultural producers (via leveraged investment), local infrastructure providers and contractors.
  • State entities: Bank of North Dakota (loan administration, analysis), Agriculture Commissioner (grant distribution), Agriculture Diversification & Development Committee (policy/allocations), Office of Management and Budget (fund transfer).
  • Fiscal impact: a one‑time transfer of $30 million from the Strategic Investment and Improvements Fund; possible future appropriation requests to repay any line of credit drawn.

Practical effect / likely impacts

  • Targets recruitment of very large capital projects by covering up‑front infrastructure costs—designed to tip competitive site selection in favor of North Dakota when projects face competing Midwestern offers.
  • Given the high eligibility thresholds and $30M program cap, supports a small number of projects (potentially one major facility).
  • Risks/considerations include the near‑term draw on the Strategic Investment and Improvements Fund and the need for legislative action to repay any BND line of credit if used.

Procedural notes

  • The bill amends and reenacts NDCC §4.1‑01.1‑07, adds the incentive program provisions, establishes the $30M transfer, sets the program expiration (June 30, 2029), and contains an emergency clause to make the act effective immediately upon approval.

Compiled from official sources — confirm details with the bill’s official record.

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