The bill amends the North Dakota Century Code to introduce significant changes to the taxation framework for coal conversion facilities. It establishes a partial exemption from the coal conversion facilities tax and introduces a lignite research tax, while repealing a previous exemption related to the coal conversion facilities tax. The new provisions will be effective through June 30, 2031, and include a structure that allows county commissioners to grant partial or complete tax exemptions for up to five years from the date of first taxable production. The bill also clarifies tax rates for various coal conversion facilities, including electrical generating and coal gasification plants, with a gradual reduction in tax shares from ninety percent to thirty-five percent over the specified timeframe.

Additionally, the bill outlines a carbon dioxide capture credit for facilities that meet certain emission reduction targets, promoting cleaner energy technologies. It mandates annual reporting on carbon capture projects and revises the allocation of tax revenues, ensuring that a portion is directed to the lignite research fund and legacy fund while maintaining minimum allocations to counties based on previous collections. The bill also removes the requirement for county auditors to calculate and submit amounts due to the state treasurer, establishing a new allocation structure where 15% of funds from coal conversion facilities go to counties and 85% to the state, ensuring counties receive at least the same amount as the previous year.

Statutes affected:
INTRODUCED: 57-60-02, 57-60-02.2, 57-60-14, 57-61-01
Prepared by the Legislative Council staff for Senator Weber: 57-60-02, 57-60-02.1, 57-60-02.2, 57-60-14, 57-61-01
Prepared by the Legislative Council staff for Representative Hagert: 57-60-02, 57-60-02.1, 57-60-02.2, 57-60-14, 57-61-01
Enrollment: 57-60-02, 57-60-02.1, 57-60-02.2, 57-60-14, 57-61-01