This bill amends and reenacts several sections of the North Dakota Century Code concerning economic development tax incentives, specifically focusing on the evaluation of these incentives, the carbon dioxide capture and injection use tax exemption, and the ad valorem property tax exemption for carbon dioxide capture equipment. Notably, it mandates that the legislative management interim committee conduct a complete analysis of designated economic development tax incentives every six years. The bill also deletes existing provisions related to sales tax exemptions for materials used in carbon dioxide-related activities, as well as repealing sections that pertain to carbon dioxide pipeline exemptions and payments in lieu of taxes for certain pipeline properties.

Additionally, the bill clarifies that coal conversion facilities and carbon dioxide capture systems are classified as personal property exempt from ad valorem taxes, with the exception of land taxes. It repeals previous sections that provided exemptions for carbon dioxide pipelines and related tax incentives, indicating a shift in policy regarding the treatment of carbon dioxide capture and injection systems. The effective dates for the changes are set for taxable events occurring after June 30, 2025, and for certain provisions beginning after December 31, 2024.

Statutes affected:
INTRODUCED: 54-35-26, 57-40.2-03.3, 57-60-06, 57-39.2-04.14