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North Dakota House sustains Armstrong’s first veto as governor • North Dakota Monitor [1]

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Date: 2025-04

The North Dakota House of Representatives on Thursday voted 15-78 against a bill to give a tax cut to prison industries, sustaining Gov. Kelly Armstrong’s first veto in office.

Senate Bill 2261 would have provided businesses tax credits when they buy goods or services from Rough Rider Industries, a state agency that sells various products made by prison inmates. 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 issued the veto March 21, calling 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 Senate a few days later voted 45-2 to override the veto.

“The only thing this bill suggested was that if you’re an in-state manufacturer and looking for somebody to subcontract some of your equipment, some of your parts, that Rough Rider could be the folks you want to go to,” Sen. Jerry Klein, R-Fessenden said on the Senate floor. “Not only will that keep the folks at Rough Rider busy, but once again it’s training, giving those inmates valuable experience.”

Rep. Emily O’Brien, R-Grand Forks, spoke against the bill on the Floor on Thursday.

She said Rough Rider Industries didn’t ask for the tax credit and that the business is already successful.

“It will not bring in any new business,” she said. “All we’ll do is give a tax credit to companies that are already doing business with Rough Rider Industries, and it will not address our workforce shortages that we are seeing continually.”

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