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Bill > HB1279


ND HB1279

ND HB1279
The exemption from the coal conversion facilities tax and the imposition of a lignite research tax; to provide an effective date; to provide a contingent effective date; and to provide an expiration date.


summary

Introduced
01/13/2025
In Committee
04/18/2025
Crossed Over
02/07/2025
Passed
05/02/2025
Dead
Signed/Enacted/Adopted
05/17/2025

Introduced Session

Potential new amendment
69th Legislative Assembly

Bill Summary

AN ACT to amend and reenact sections 57-60-02, 57-60-02.1, 57-60-02.2, 57-60-14, and 57-61-01 of the North Dakota Century Code, relating to a partial exemption from the coal conversion facilities tax and the imposition of a lignite research tax, allocation of the coal conversion facilities privilege tax and the lignite research tax, and an exemption from the coal severance tax; to repeal section 57-60-02.2 of the North Dakota Century Code, relating to the exemption from the coal conversion facilities tax and the imposition of a lignite research tax; to provide an effective date; to provide a contingent effective date; and to provide an expiration date.

AI Summary

This bill modifies the tax structure for coal conversion facilities and lignite research in North Dakota from June 30, 2026, through June 30, 2031. It gradually reduces the tax exemption for coal conversion facilities, starting with a 90% exemption in 2026-2027 and decreasing to a 35% exemption in 2030-2031. During this period, facilities will be required to pay a lignite research tax equal to 5% of their total tax. The bill changes how tax revenues are allocated, directing a portion to the lignite research fund and the remainder to the state's legacy fund. Additionally, the bill maintains provisions for carbon dioxide capture credits, where facilities can receive tax reductions based on their carbon dioxide emission capture rates. The legislation also includes a contingent effective date tied to the potential repeal of certain federal renewable energy tax credits. The changes are designed to provide a gradual transition in the taxation of coal conversion facilities while supporting lignite research and the state's legacy fund.

Committee Categories

Budget and Finance

Sponsors (11)

Last Action

Filed with Secretary Of State 05/06 (on 06/11/2025)

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