image97

Rugby's Renaissance Zone

In 1999, The North Dakota Legislative Assembly approved the Renaissance Zone Act to provide tax incentives to encourage investment in downtown or other properties. Rugby's Renaissance Zone was created in 2005 and is located within the downtown area. The intent of the zone is to revitalize the the core of the community by providing specific tax incentives to encourage reinvestment in these properties. 

Renaissance Zone Program Information

Tax Incentives-Business & Commercial Properties

Tax Incentives-Business & Commercial Properties

Tax Incentives-Business & Commercial Properties

 A 100% state income tax exemption on income derived from the business or investment location for five years. 


Up to 100% property tax exemption for buildings, structures, fixtures, and improvements purchased or rehabilitated as a zone project for any businesses or investment purpose for up to give years.

Residential Properties

Tax Incentives-Business & Commercial Properties

Tax Incentives-Business & Commercial Properties

A state individual income tax exemption up to $10,000 each year for up to five years. 


Up to 100% property tax exemption on improvements only to the building for up to five years. 


Property tax exemptions are provided on the value of the improvements only to the building. Taxes are still assessed on associated land. Additional incentives may be available for historic properties. 

Renaissance Zone Program Qualifications

How to Qualify

The are several different ways to qualify for Renaissance Zone tax incentives: 


  • Construct a new building within the zone
  • Rehabilitate a building that you own within the zone
  • Buy a building or primary residence in the zone and make significant improvements.
  • Continue o lease in a building being rehabilitated as a zone project. 


The required level of investment to qualify as a Renaissance Zone Project varies bases on the type of project. It is also possible to have more than one project in a single building, such as rehabilitating a building and multiple leases. 

Qualifying Investments

Commercial Properties

Residential Properties

Residential Properties

Property owner must make capital improvements equal to the greatest of the following: 


  • 50% of the true and full value of the property prior to improvements.
  • $10,000 of capital investment.


Proposed capital investments must substantially improve the life expectancy of the property. Capital investments include, but are not limited to, replacement or updating of the roof, foundation, structure, siding, windows and doors, as well as electrical, plumbing, heating and cooling systems. Capital improvements do not include new floor covering, window treatments, wall coverings or furnishing. 

Residential Properties

Residential Properties

Residential Properties

Property owner must make improvements equal to the greatest of the following:


  • 20% of the true and full value of the property prior to improvements. 
  • $10,000 of capital investment


 Proposed capital investments must substantially improve the life expectancy of the property. Capital investments include, but are not limited to, replacement or updating of the roof, foundation, structure, siding, windows and doors, as well as electrical, plumbing, heating and cooling systems. Capital improvements do not include new floor covering, window treatments, wall coverings or furnishing.  

Application Process

Renaissance Zone application must be approved before investments begin.

A Renaissance Zone project must be approved by the Rugby Renaissance Zone Committee. Rugby City Council, and ND Department of Commerce before an eligible purchase, rehabilitation, new construction project or lease from the property begins. A certificate of good standing for the ND Tax Department is also required. Please allow three weeks of more for the review and approval process. 

Project Evaluation

In addition to the minimum investment requirements, applications are evaluated based on public benefit, goals, and objectives for the programs such as:  


  • Maintaining and expanding existing businesses.
  • Including a street level commercial/retail use.
  • Reinforcing emerging entertainment, medical, office, service and retail uses with compatible uses. 
  • Encouraging mixed use development and redevelopment of upper levels of existing buildings as residential apartments. 
  • Upholding Rugby's heritage with historic preservation and adaptive reuse of historic buildings. 

Improvements made before approval are not eligible.

Rugby Renaissance Zone Program Application