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Bioscience firms and regional development groups describe local jobs gains under manufacturing sales-tax exemption
Summary
The Bioscience Association and Aldevron told a legislative committee the biologic manufacturing sales-tax exemption supports high-wage jobs and R&D in Fargo; Aldevron said the exemption allows reinvestment and cited a $65 million Fargo payroll and the company's $9.6 billion acquisition by Danaher.
Representatives of the Bioscience Association of North Dakota and private firms told the Tax Reform Relief Advisory Committee the state’s biologic manufacturing sales-tax exemption supports regional R&D, production and high-wage jobs.
Nancy Johnson, secretary of the Bioscience Association, said the exemption is a focused tool that helps connect innovators, companies and investors and supports industry growth.
Ellen Schafer, senior director of communications at Aldevron, described Aldevron’s evolution from an NDSU spinout to a global manufacturer and provided company statistics: Aldevron employs 842 people in North Dakota (587 in Fargo) with a Fargo payroll of about $65,000,000; she said the company was acquired in 2020 by Danaher Corporation for $9,600,000,000. Schafer told the committee the manufacturing sales-tax exemption treats biologic manufacturers like other manufacturers for purposes of exempting inputs such as reagents and supplies, and that the exemption helps Aldevron reinvest savings into research and development and production capacity.
Ryan Hass of the Greater Fargo-Moorhead Economic Development Corporation gave a broader regional view of the sector’s growth using Lightcast modeling. He cited a jump in gross regional product for selected bioscience NAICS codes from roughly $103 million in 2014 to about $507.2 million in 2024, and reported strong job growth in the cluster.
Committee members thanked witnesses and did not take immediate action on this item; staff noted the presentations will inform the committee’s broader review of sales-and-use exemptions during the interim.
