This bill amends and reenacts several sections of the North Dakota Century Code, focusing on 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. 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 the sales and use tax exemption for materials used in the carbon dioxide capture process for enhanced oil recovery, as well as repealing sections related to carbon dioxide pipeline exemptions and payments in lieu of taxes for certain carbon dioxide 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. The repeal of specific sections related to carbon dioxide pipeline exemptions indicates a shift in policy regarding the taxation of such infrastructure. The effective dates for the various provisions are set for taxable events occurring after June 30, 2025, and for taxable years beginning after December 31, 2024.

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