Armstrong presents his proposed budget for the 2025-2027 biennium to lawmakers at the Capitol. (Mary Steurer/North Dakota Monitor)
BISMARCK (North Dakota Monitor) – Gov. Kelly Armstrong rejected a proposed tax credit for prison industries in his first veto of the 2025 legislative session.
Senate Bill 2261 would provide businesses with tax credits when they buy goods or services from prison industry programs. The tax credit would be equal to up to 10% of the cost of the purchase. The bill cleared the Senate with nearly unanimous support, and passed the House with about 63% support.
Armstrong noted in his Friday veto letter that goods purchased from Rough Rider Industries — a state agency that sells various products made by prison inmates — would qualify for this credit. He called the tax incentive anti-competitive.
“This bill creates an uneven playing field by giving Rough Rider Industries an unfair competitive advantage over out-of-state manufacturers,” he wrote in the letter, which is addressed to Lt. Gov. Michelle Strinden, who is president of the Senate.
The Greater North Dakota Chamber provided testimony in favor of the bill, arguing that supporting Rough Rider Industries helps give more people in prison access to job skills training.
The Legislature can override the veto with a two-thirds majority vote in each chamber.
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