North Dakota Primary Residence Tax Credit Faces Funding Shortfall

State officials expect a record number of applicants, but current budget may not cover everyone

Mar. 24, 2026 at 4:55pm

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The number of North Dakotans applying for the Primary Residence Tax Credit is increasing, with over 160,000 expected to apply this year. However, the state's current $220 million budget allocation may not be enough to cover all eligible applicants, raising concerns about potential funding shortfalls for the popular program.

Why it matters

The Primary Residence Tax Credit is an important program that helps make homeownership more affordable for North Dakota residents. With a growing number of applicants, any potential funding shortfall could leave many homeowners without the expected tax relief, impacting household budgets and the state's efforts to promote affordable housing.

The details

In 2025, the state set aside a $408 million allotment for the Primary Residence Tax Credit program. Last year, the state used $207 million to cover applicants, and this year they are expected to need $220 million to cover all eligible qualifiers. However, the current budget may not be sufficient to meet the anticipated demand, which has risen from 152,000 applicants last year to an expected 160,000 this year.

  • In 2025, the state set aside a $408 million allotment for the Primary Residence Tax Credit program.
  • Last year, the state used $207 million to cover applicants.
  • This year, they are expected to need $220 million to cover all eligible qualifiers.

The players

North Dakota

The state government responsible for administering the Primary Residence Tax Credit program.

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What’s next

Lawmakers say they are exploring ways to find additional funding for the program to ensure all eligible North Dakotans can receive the tax credit.

The takeaway

The growing demand for the Primary Residence Tax Credit in North Dakota highlights the importance of this program in making homeownership more accessible. However, the potential funding shortfall raises concerns about the state's ability to meet the needs of all eligible applicants, underscoring the need for a long-term solution to ensure the program's sustainability.