This bill establishes a new tax credit for primary sector businesses in North Dakota that purchase components or labor from prison industries. The credit, known as the "Prison Industries Workforce Development Credit," allows eligible taxpayers to claim a nonrefundable credit equal to ten percent of their costs for these purchases, with a maximum aggregate credit limit of $45,000 per calendar year. If the credit exceeds the taxpayer's tax liability, it can be carried forward for up to five years. Additionally, the bill outlines specific requirements for taxpayers to provide information to the tax commissioner to claim the credit and stipulates that these purchases cannot be used for any other tax deductions or credits.

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.