Property tax rates in Minnesota are determined by the assessed market value of each property. As a border city, Moorhead benefits from special legislation known as Disparity Reduction Credit, which automatically caps property tax rates at 1.6% of the assessed market value, no application required. This program helps keep Moorhead’s property tax rates competitive with those in North Dakota, supporting local businesses in maintaining a fair advantage across the border.
Business Incentive Programs
Grow Your Business in Moorhead
Moorhead is open for business, and ready to help yours thrive. Whether you're launching, expanding, or relocating, we offer a variety of business incentives to support your success. Our toolbox includes property tax exemptions, low-interest gap financing, employee-based credits, and rebates tailored to businesses of all sizes.
Property Tax Programs
Renaissance Zone Property Tax Exemption
Property tax exemptions of 5, 10, or 15 years are available for new or rehabilitated commercial, residential, or mixed-use projects located within the Moorhead Renaissance Zone.
Application and City Council approval are required prior to beginning construction.
Administered by: City of Moorhead – Economic Development
Commercial & Industrial Property Tax Exemption
Property tax exemptions of 3 or 5 years are available for new or expanding commercial or industrial facilities located outside the Moorhead Renaissance Zone.
Application and City Council approval are required prior to beginning construction.
Administered by: City of Moorhead – Economic Development
Administered by: City of Moorhead – Economic Development
Multi-Family Residential Property Tax Exemption
Property tax exemptions of 2 or 4 years are available for new or substantially rehabilitated multi-family housing projects in Moorhead. Projects may also qualify for an employee credit if they include health-related services.
Application and City Council approval are required prior to beginning construction.
Administered by: City of Moorhead – Economic Development
Tax Increment Financing is a public financing tool that can help support redevelopment, infrastructure improvements, and economic development by capturing the future increase in property tax revenues generated by a project. These funds can be reinvested to offset eligible development costs such as site preparation, public utilities, or other qualifying expenses.
Note: The City of Moorhead is currently reviewing its TIF policy. Program details and availability are subject to City Council consideration and approval.
Tax Credit Programs
Workers' Compensation Rebate Program
Eligible businesses in Moorhead may receive an income tax credit that rebates 30% of their workers’ compensation expenses, up to $40,000 per business per year. This program helps reduce operating costs and supports workforce investment.
Administered by: City of Moorhead – Economic Development
Administered by: City of Moorhead – Economic Development
New or expanding primary sector businesses located within designated target areas may qualify for employee tax credits of up to $3,000 per eligible employee. This incentive supports job creation and business growth in strategically prioritized regions.
Administered by: City of Moorhead – Economic Development
New or expanding primary sector businesses may qualify for a sales tax credit of up to $25,000. This incentive helps reduce upfront costs and encourages investment in targeted growth sectors.
Administered by: City of Moorhead – Economic Development
Seed Capital Investment Credit Program
Eligible innovative businesses in Moorhead may receive a tax credit equal to 45% of qualified investments—up to $112,500 per year. Qualifying expenses include equipment purchases, research and development, marketing and sales activities, and working capital. This incentive is designed to support high-growth companies and encourage continued innovation.
Administered by: City of Moorhead – Economic Development
New or expanding primary sector businesses in Moorhead may qualify for electric and water utility credits based on their utility load. This program is administered by Moorhead Public Service and is designed to support businesses with significant operational needs by reducing utility costs.
Administered by: Moorhead Public Service
Loan Programs
Businesses expanding or starting up in Moorhead may be eligible for gap financing loans of up to $50,000. These loans support projects that create or retain jobs and are administered by West Central Initiative. This funding helps bridge financial gaps and encourages sustainable business growth in the region.
Administered by: West Central Initiative
Local Contact: Greg Wagner
Learn more: West Central Initiative – Loan Applications
Business & Industry Loan - West Central Initiative
Expanding manufacturing businesses in Moorhead may qualify for gap financing loans of up to $300,000 through the Business & Industry Loan Program administered by West Central Initiative. This funding supports capital investment and job creation, helping manufacturers scale operations and strengthen the regional economy.
Administered by: West Central Initiative
Local Contact: Greg Wagner
Learn more: West Central Initiative – Loan Applications
Local Contact: Greg Wagner
Learn more: West Central Initiative – Loan Applications
Small businesses in Moorhead may benefit from loan guarantees designed to reduce risk for primary lenders. This program ensures that lenders are not solely responsible for the full loan amount, with a maximum guarantee of up to $5 million. It helps improve access to capital for businesses that might otherwise face financing challenges.
Local Contact: West Central MN SBDC - Ian Carlstrom
Learn more: SBA 7(a) Loan Program – U.S. Small Business Administration
Local SBDC Info: West Central MN SBDC
Learn more: SBA 7(a) Loan Program – U.S. Small Business Administration
Local SBDC Info: West Central MN SBDC
New or growing small businesses in Moorhead that are unable to secure traditional financing may be eligible for SBA Microloans of up to $50,000. This program helps entrepreneurs access the capital they need to launch or expand their operations.
Typical Uses: Microloan funds can be used for working capital, inventory, supplies, furniture, fixtures, and equipment purchases.
Local Contact: West Central MN SBDC - Ian Carlstrom
Learn more: SBA Microloan Program – U.S. Small Business Administration
Local SBDC Info: West Central MN SBDC
Small businesses in Moorhead may qualify for subordinated loans of up to $5 million through the SBA 504 Loan Program, designed to support business expansion and long-term growth.
Local Contact: West Central MN SBDC - Ian Carlstrom
Learn more: SBA 504 Loan Program – U.S. Small Business Administration
Local SBDC Info: West Central MN SBDC
State Programs
The Job Creation Fund provides grants of up to $1 million to eligible businesses that create high-quality jobs, with a focus on manufacturing, warehousing, distribution, and information technology. This program is administered by the State of Minnesota and is designed to support strategic business growth and workforce development.
Administered by: State of Minnesota
Regional Representative: David Heyer
Learn more: Minnesota Job Creation Fund – DEED
Learn more: Minnesota Job Creation Fund – DEED
Minnesota Investment Fund (MIF)
The Minnesota Investment Fund provides gap financing loans to businesses that are adding new workers and retaining high-quality jobs across the state. The program targets industrial, manufacturing, and technology sectors to help grow the local and state tax base and strengthen Minnesota’s overall economic vitality.
Administered by: State of Minnesota
Local Contact: David Heyer
Learn more: Minnesota Investment Fund – DEED