Biological organisms exhibit numerous types of plasticity, where they respond both developmentally and behaviorally to environmental factors. In some organisms, for example, environmental conditions can lead to the developmental expression of genes that would otherwise remain dormant, leading to significant phenotypic variation and allowing selection to act on these otherwise "invisible" genes. In contrast to biological plasticity, the vast majority of evolutionary computation systems, including genetic programming, are rigid and can only adapt to very limited external changes. In this paper we extend the N-gram GP system, a recently introduced estimation of distribution algorithm for program evolution, using Incremental Fitness-based Development (IFD), a novel technique which allows for developmental plasticity in the generation of linear-GP style programs. Tests with a large set of problems show that the new system outperforms the original N-gram GP system and is competitive with standard GP. Analysis of the evolved programs indicates that IFD allows for the generation of more complex programs than standard N-gram GP, with the generated programs often containing several separate sequences of instructions that are reused multiple times, often with variations.