All Roll Calls
Yes: 159 • No: 116
North DakotaSB 22612025 Regular SessionSenateWALLET
AN ACT to create and enact a new section to chapter 57-38 and a new subdivision to subsection 7 of section 57-38-30.3 of the North Dakota Century Code, relating to a prison industries workforce development income tax credit; to provide for a legislative management study; and to provide an effective date.
Sponsored By: Jerry Klein (Republican)
Became Law
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Owners can claim passed‑through credit
Beginning in 2025, a pass‑through business figures this credit at the entity level. It allocates the total credit to owners by their ownership share. You can claim your share against your North Dakota individual income tax.
Tax credit for prison‑industry purchases
Beginning in 2025, primary sector businesses get a nonrefundable North Dakota income tax credit equal to 10% of components and labor bought from prison industries for inmate workforce development, claimed in the year of purchase. You can use the credit only up to your state tax bill, and carry any extra forward for up to five years. The state caps all credits at $45,000 per year and will split that amount among claimants if requests exceed the cap. Corporate groups that file a combined consolidated return can apply the credit against the group’s total North Dakota tax. By January 31 each year, submit forms with primary sector verification and a paid prison industries invoice; these purchases cannot also be used for any other North Dakota income tax deduction or credit.
Study on prison job programs
During the 2025–26 interim, Legislative Management studies prison industries and job training for people in prison. It reports findings and any bill ideas to the seventieth legislative assembly.
Sponsors & Cosponsors
Sponsor
Jerry Klein
Republican • Senate
Cosponsors
Jon O. Nelson
Republican • House
Austen Schauer
Republican • House
Jeff Barta
Republican • Senate
Greg Kessel
Republican • Senate
Roll Call Votes
House vote • 4/3/2025
Veto sustained, yeas 15 nays 78
Yes: 15 • No: 78
Senate vote • 3/27/2025
Passed over veto, yeas 45 nays 2
Yes: 45 • No: 2
House vote • 3/13/2025
Second reading, passed, yeas 56 nays 33
Yes: 56 • No: 33
Senate vote • 2/3/2025
Second reading, passed, yeas 43 nays 3
Yes: 43 • No: 3
Actions Timeline
Filed with Secretary Of State 04/08
4/8/2025SenateVeto sustained, yeas 15 nays 78
4/3/2025HouseConsideration of Governor's veto
4/3/2025HousePassed over veto, yeas 45 nays 2
3/27/2025SenateConsideration of Governor's veto
3/27/2025SenateVetoed by Governor 03/21
3/24/2025SenateSent to Governor
3/18/2025SenateSigned by President
3/18/2025SenateSigned by Speaker
3/18/2025HouseReturned to Senate
3/14/2025SenateSecond reading, passed, yeas 56 nays 33
3/13/2025HouseReported back, do pass, place on calendar 10 2 2
3/12/2025HouseCommittee Hearing 09:30
3/12/2025HouseIntroduced, first reading, referred Finance and Taxation Committee
2/18/2025HouseReceived from Senate
2/4/2025HouseSecond reading, passed, yeas 43 nays 3
2/3/2025SenateAmendment adopted, placed on calendar
2/3/2025SenateReported back amended, do pass, amendment placed on calendar 5 0 0
1/31/2025SenateCommittee Hearing 11:00
1/27/2025SenateIntroduced, first reading, referred Industry and Business Committee
1/20/2025Senate
Bill Text
Adopted by the Senate Industry and Business Committee
Enrollment
FIRST ENGROSSMENT
INTRODUCED
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