Geothermal Tax Credit

January 05, 2016


Note: This credit expired on December 31, 2014, and is not allowed for devices installed on or after January 1, 2015.

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.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: North Dakota
Incentive Type: Personal Tax Credit
Web Site:
Administrator: North Dakota Department of Commerce
Start Date: 1/1/2009
Eligible Renewable/Other Technologies:
  • Geothermal Electric
  • Geothermal Heat Pumps
  • Geothermal Direct-Use
Incentive Amount: 15% (3% per year for five years)
Carryover Provisions: Excess credit may be carried over to each of the 10 succeeding taxable years


Name: ND Century Code 57-38-30.3
Date Enacted: 4/9/2009
Effective Date: 1/1/2009
Expiration Date: 12/31/2014


Name: Public Information
Organization: Office of the State Tax Commissioner
Address: 600 E. Boulevard Ave., Dept. 127
Bismarck ND 58505-0599
Phone: (701) 328-7088

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.