The carbon dioxide pipeline exemption, payments in lieu of taxes...
A BILL for an Act to amend and reenact subsection 3 of section 54-35-26 and sections 57-40.2-03.3 and 57-60-06 of the North Dakota Century Code, relating to 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 used for enhanced oil recovery and secure geologic storage; to repeal sections 57-06-17.1, 57-06-17.2, and 57-39.2-04.14 of the North Dakota Century Code, relating to the carbon dioxide pipeline exemption, payments in lieu of taxes for certain carbon dioxide pipeline property, and the carbon dioxide capture and injection sales tax exemption; and to provide an effective date.
This bill, HB1295, proposes changes to North Dakota's tax laws regarding carbon dioxide pipelines and equipment used for enhanced oil recovery and secure geologic storage. Specifically, it aims to repeal current exemptions for carbon dioxide pipelines and modify tax incentives for certain carbon dioxide capture equipment. The bill also seeks to adjust sales tax exemptions for carbon dioxide capture and injection.
The bill would affect companies involved in carbon dioxide pipelines and those using carbon dioxide capture equipment for oil recovery and storage. If passed, it would alter the tax incentives and exemptions these businesses currently enjoy, potentially impacting their financial planning and operations.
As of the latest update, the bill was introduced on January 13, 2025, and underwent a committee hearing on February 3, 2025. On February 13, 2025, the bill was reported back from the committee with a recommendation not to pass. The House then voted on February 14, 2025, where it failed to pass with 24 yeas and 60 nays.
