A Win for Business Certainty: Thank You to Legislators Who Stood Strong Against HB 1571

North Dakota businesses and economic growth secured a victory this session with the defeat of HB 1571—a bill that would have prematurely revoked a key tax incentive for the bioscience industry. At GNDC, we believe that tax policy should be predictable and consistent, and thanks to a group of steadfast legislators, North Dakota remains committed to fostering a competitive business environment.
 
In 2023, the Legislature passed HB 1455, establishing a manufacturing tax exemption specifically for bioscience. This was a forward-thinking move, recognizing that states compete aggressively for industry growth, and businesses will relocate to where incentives make sense. The exemption, set to sunset in 2029, was designed to attract and retain bioscience companies, generating long-term benefits for our state’s economy and revenues.
 
Unfortunately, HB 1571 aimed to pull the rug out from under businesses by revoking this exemption just 19 months after its passage. Changing the rules midway creates uncertainty for businesses and damages North Dakota’s reputation as a business-friendly state. We expect such instability from the federal government, not from our own state.
 
We tip our hat to the legislators who stood firm and upheld North Dakota’s commitment to economic growth. Let's discuss the loud and proud:

• Rep. D. Anderson carried this bill and highlighted the importance of a structured vetting process for tax policy. He reaffirmed that incentives play a critical role in business development, stating, “Anything we can do to encourage business to come to our state is well worth it.”
• Rep. Hagert reminded his colleagues that this policy was intentionally crafted with a sunset in 2029 to allow for proper evaluation, saying, “From a business standpoint, yes, it’s dollars that are allocated, but in reality, we’ve only allowed this exemption for 19 months.”
• Rep. Murphy spoke to the importance of diversifying North Dakota’s economy, stressing that the bioscience industry is a valuable recruitment tool that will help create a favorable business climate.

These were all great, but an MVP comment was made and that winner was…

• Rep. Headland made it clear that pulling this exemption in the middle of its term would be a mistake, emphasizing, “We pride ourselves on being a business-friendly state, and this has helped us get there.” 

This is the kind of leadership that strengthens North Dakota’s economy. We supported this red board approach—keeping our word on tax incentives and allowing sunset provisions to work as intended. Tax policy takes time to yield results. Our state should continue to plan comprehensively, fostering an environment where businesses can thrive, invest, and grow.
 
Thank you to the legislators who recognized the importance of stability and predictability in business policy. Your leadership ensures that North Dakota remains a place where businesses want to build, expand, and stay.