Geothermal Tax Credit

North Dakota offers an income tax credit to individuals, estates and trusts for the cost of acquiring and installing a geothermal energy system in a building or on property owned or leased by the taxpayer in North Dakota. For systems installed after December 31, 2008, and before January 1, 2015, the credit is equal to 3% per year for five years of the actual cost of acquisition and installation of the system. Any excess may be used as a credit carryover to each of the 10 succeeding taxable years. If the taxpayer holds an interest in a pass-through entity (such as a partnership or S-corporation) that installs a geothermal system, the credit is passed through to the taxpayer in proportion to its interest in the entity.