This bill proposes the creation of a new section in the North Dakota Century Code that establishes a nonrefundable income tax credit for primary sector businesses that purchase components or labor from prison industries. The credit is set at ten percent of the costs incurred for these purchases within a calendar year, with a maximum aggregate credit limit of $45,000 per year. Taxpayers can carry forward any unused credit for up to five succeeding taxable years, and if the total claimed exceeds the limit, the tax commissioner will prorate the credits among claimants. Additionally, the bill outlines specific requirements for taxpayers to provide information to the tax commissioner to claim the credit, including substantiation of their primary sector designation and details of the purchases made.

Furthermore, the bill mandates a legislative management study during the 2025-26 interim to explore the alignment of prison industries with workforce development programs for incarcerated individuals. This study aims to assess how these industries can collaborate with the manufacturing sector and other private industries to enhance workforce development and support positive outcomes for individuals re-entering society. The provisions of the bill will take effect for taxable years beginning after December 31, 2024.