This bill amends and reenacts specific sections of the North Dakota Century Code concerning economic development tax incentives and the use tax exemption for certain materials used in biologic manufacturing. It mandates that the legislative management interim committee conduct a complete analysis of designated economic development tax incentives every six years, including various credits and exemptions related to manufacturing, agriculture, and energy production. Notably, the bill deletes the sales and use tax exemption for raw materials, single-use product contact systems, and reagents used for biologic manufacturing from the list of incentives subject to analysis.

Additionally, the bill repeals section 57-39.2-04.19, which previously provided a sales tax exemption for the aforementioned materials. The amendments to section 57-40.2-03.3 clarify the use tax obligations for contractors and subcontractors, specifying that certain tangible personal property used in construction or expansion projects may be exempt from this tax. The effective date for the repeal and amendments is set for taxable events occurring after June 30, 2025.

Statutes affected:
INTRODUCED: 54-35-26, 57-40.2-03.3, 57-39.2-04.19