This bill amends the North Dakota Century Code to introduce significant changes to the taxation of coal conversion facilities and related entities. It establishes a partial exemption from the coal conversion facilities tax, which will be phased in from June 30, 2026, to June 30, 2031, starting at ninety percent and decreasing to thirty-five percent. Additionally, a lignite research tax is created, and the allocation of the coal conversion facilities privilege tax is modified. The bill also includes provisions for county commissioners to grant tax exemptions for up to five years, with the requirement that any taxes collected from exempt facilities be allocated entirely to the county. Furthermore, it introduces a carbon dioxide capture credit for facilities that meet specific emissions capture levels, along with annual reporting requirements.

The bill also repeals previous exemptions related to the coal conversion facilities tax and makes several deletions from current law, including the removal of provisions regarding the calculation and verification of amounts due to counties and the repeal of Section 57-60-02.2. It establishes a severance tax of thirty-seven and one-half cents per ton of coal severed for sale or industrial purposes, with revenue allocations ensuring that counties receive at least the same revenue as the previous year. The effective dates for various provisions are set, with some taking effect for taxable production after June 30, 2025, and others contingent upon the repeal of specific federal tax credits before June 30, 2031.

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