Gov. Armstrong vetoes bill giving tax break related to inmate labor
Mar 23, 2025
Bismarck, N.D. (KXNET)- Governor Kelly Armstrong has vetoed his first bill of the legislative session.
On Friday, Armstrong vetoed Senate Bill 2261, which was a tax credit for businesses in North Dakota who utilize the group known as Roughrider Industries.That's a program operated by the North Da
kota Department of Corrections and Rehabilitation to put inmates to work.The bill passed in the house and senate and was seeking to offer businesses up to a $45,000 credit.Lawmakers who voted against the idea say it gives an unfair advantage.
"There's a number of the former residents of the North Dakota state penitentiary that are being hired to fill workforce needs in the state and becoming valuable members because they're trained," Rep. John Nelson said. "The only way they're going to be able to get that training is if they're able to continue to make these products."
"For everyone's gain, there's also a loss," Rep. Jim Kasper said. "And what I mean by that is, this appears to be an incentive that will incentivize businesses to buy from an industry where their labor cost is maybe next to nothing."
In his statement explaining why he vetoed the idea, Governor Armstrong wrote, "This bill creates an uneven playing field by giving Rough Rider Industries an unfair competitive advantage over out-of-state manufacturers. By carving out a special market incentive in the form of a tax credit, the state is disrupting the longstanding principle of fair and equal market access for all participants."
The bill will now be returned to the state senate to consider. ...read more read less