North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1279

Introduced
1/13/25  
Refer
1/13/25  
Report Pass
2/5/25  
Engrossed
2/7/25  
Refer
2/17/25  
Report Pass
4/1/25  
Refer
4/2/25  
Report Pass
4/18/25  
Enrolled
5/2/25  

Caption

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.

Impact

The proposed amendment has significant implications for state laws regarding taxation and environmental remediation. By offering exemptions to coal conversion facilities and introducing a lignite research tax, the bill aims to stimulate investment in cleaner coal technologies and carbon capture initiatives. This approach is expected to enhance the economic viability of coal-related industries in North Dakota while potentially reducing their environmental footprint. The bill's effective dates are structured to allow for gradual implementation of these changes, which will impact current regulations and compliance expectations.

Summary

House Bill 1279 is aimed at amending sections of the North Dakota Century Code related to coal conversion facilities, specifically altering the exemption from the coal conversion facilities tax and imposing a lignite research tax. The bill seeks to establish an effective date and an expiration date for these provisions while ensuring the allocation of the coal conversion privilege tax is managed in a way that aligns with state objectives. It will particularly affect the taxation practices for coal severance and electricity-generating facilities in the state.

Sentiment

The sentiment surrounding HB 1279 appears to be mixed. Supporters of the bill, which include legislators focused on economic development, argue that the tax exemptions will benefit the state's coal industry and encourage cleaner energy practices. However, opponents raise concerns about the long-term sustainability of continued reliance on coal and the potential negative impacts on environmental initiatives. This dichotomy creates a polarized discussion regarding the balance between economic growth and environmental responsibility.

Contention

Notable points of contention include the potential consequences of exempting coal conversion facilities from certain taxes, which critics argue could lead to lost state revenue and undermine government-funded research on renewable energy sources. Additionally, the bill stipulates that allocations from these taxes are to be directed into state funds aimed at supporting lignite research, which, while beneficial in theory, raises questions about the actual effectiveness of such programs. The effectiveness of the proposed carbon capture strategies to be implemented under this bill faces skepticism from various environmental groups.

Companion Bills

No companion bills found.

Previously Filed As

ND HB1279

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.

ND HB1484

The imposition of motor vehicle excise tax and an exemption for motor vehicle excise tax paid or not assessed in other states; and to provide an effective date.

ND HB1484

A BILL for an Act to amend and reenact sections 57-40.3-02 and 57-40.3-09 of the North Dakota Century Code, relating to the imposition of motor vehicle excise tax and an exemption for motor vehicle excise tax paid or not assessed in other states; and to provide an effective date.

ND HB1295

The carbon dioxide pipeline exemption, payments in lieu of taxes for certain carbon dioxide pipeline property, and the carbon dioxide capture and injection sales tax exemption; and to provide an effective date.

ND HB1295

A BILL for an Act to amend and reenact subsection 3 of section 54-35-26 and sections 57-40.2-03.3 and 57-60-06 of the North Dakota Century Code, relating to the evaluation of economic development tax incentives, the carbon dioxide capture and injection use tax exemption, and the ad valorem property tax exemption for carbon dioxide capture equipment used for enhanced oil recovery and secure geologic storage; to repeal sections 57-06-17.1, 57-06-17.2, and 57-39.2-04.14 of the North Dakota Century Code, relating to the carbon dioxide pipeline exemption, payments in lieu of taxes for certain carbon dioxide pipeline property, and the carbon dioxide capture and injection sales tax exemption; and to provide an effective date.

ND SB2397

The temporary exemption for oil and gas wells employing a system to avoid flaring, an exemption from gross production tax for gas produced from certain enhanced oil recovery projects, and the definition of development incentive well; to provide an effective date; and to provide an expiration date.

ND SB2397

AN ACT to create and enact a new subsection to section 57-51.1-03 of the North Dakota Century Code, relating to a limited exemption for development incentive wells; to amend and reenact sections 57-51-02.6, 57-51-05, and 57-51.1-01 of the North Dakota Century Code, relating to the temporary exemption for oil and gas wells employing a system to avoid flaring, an exemption from gross production tax for gas produced from certain enhanced oil recovery projects, and the definition of development incentive well; to provide an effective date; and to provide an expiration date.

ND SB2323

Oil and gas gross production tax allocations and the state share of oil and gas tax allocations; to provide for a legislative management report; to provide an exemption; and to provide an effective date.

ND SB2323

AN ACT to amend and reenact sections 57-51-15 and 57-51.1-07.5 of the North Dakota Century Code, relating to oil and gas gross production tax allocations and the state share of oil and gas tax allocations; to provide for a legislative management report; to provide an exemption; and to provide an effective date.

ND SB2320

The carbon dioxide pipeline tax exemption; and to provide an effective date.

Similar Bills

No similar bills found.