N.D.C.C. § 57-60-02.1 — Carbon dioxide capture credit - Reporting requirement

(Effective through
June 30, 2026)
A coal conversion facility that achieves a twenty percent capture of carbon dioxide
emissions during a taxable period is entitled to a twenty percent reduction in the state general
fund share of the tax imposed under section 57 -60-02 during that taxable period. The facility is
entitled to an additional reduction of one percent of the state general fund share of the tax
imposed under section 57 -60-02 for every additional two percentage points of its capture of
carbon dioxide emissions. A maximum fifty percent reduction of the state general fund share of
the tax imposed under section 57 -60-02 is allowed for eighty percent or more capture of carbon
dioxide emissions. A coal conversion facility may receive the reduction in coal conversion tax
under this section for ten years from the date of first capture of carbon dioxide emission or for
ten years from the date the coal conversion facility is eligible to receive the credit. A coal
conversion facility that met the carbon dioxide capture requirements before January 1, 2017,
may not claim the reduction under this section.
The operator of a coal conversion facility that receives a credit under this section shall
report annually to the legislative council. The report must include:
1. An overview of the carbon dioxide capture project.
2. A status report on the current state of the carbon dioxide capture project, including
data on the amount of carbon dioxide produced from the facility before the carbon
dioxide capture project and the current carbon dioxide produced and captured from the
facility.
3. Any recent changes to enhance the carbon dioxide capture system.
4. Information on the status of federal law and regulations related to the carbon dioxide
capture project, including any benefits from the project realized by the operator under
federal law and regulations.
Carbon dioxide capture credit - Reporting requirement. (Effective after June 30, 2026)
A coal conversion facility that achieves a twenty percent capture of carbon dioxide emissions
during a taxable period is entitled to a twenty percent reduction in the state legacy fund share of
the tax imposed under section 57 -60-02 during that taxable period. The facility is entitled to an
additional reduction of one percent of the state legacy fund share of the tax imposed under
section 57 -60-02 for every additional two percentage points of its capture of carbon dioxide
emissions. A maximum fifty percent reduction of the state legacy fund share of the tax imposed
under section 57-60-02 is allowed for eighty percent or more capture of carbon dioxide
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emissions. A coal conversion facility may receive the reduction in coal conversion tax under this
section for ten years from the date of first capture of carbon dioxide emission or for ten years
from the date the coal conversion facility is eligible to receive the credit. A coal conversion
facility that met the carbon dioxide capture requirements before January 1, 2017, may not claim
the reduction under this section.
The operator of a coal conversion facility that receives a credit under this section shall
report annually to the legislative council. The report must include:
1. An overview of the carbon dioxide capture project.
2. A status report on the current state of the carbon dioxide capture project, including
data on the amount of carbon dioxide produced from the facility before the carbon
dioxide capture project and the current carbon dioxide produced and captured from the
facility.
3. Any recent changes to enhance the carbon dioxide capture system.
4. Information on the status of federal law and regulations related to the carbon dioxide
capture project, including any benefits from the project realized by the operator under
federal law and regulations.
57-60-02.2. Coal conversion facility tax - Exemption - Lignite research tax -
Imposition. (Effective through June 30, 2026)
1. Excluding the generation tax imposed under subsection 3 of section 57 -60-02, a coal
conversion facility is exempt from eighty -five percent of the tax imposed under section
57-60-02 and instead shall pay a lignite research tax equal to eighty-five percent of the
tax imposed under section 57-60-02 multiplied by five percent.
2. An electrical generating plant is exempt from the generation tax imposed under
subsection 3 of section 57 -60-02 and instead shall pay a lignite research tax equal to
the tax imposed under subsection 3 of section 57-60-02 multiplied by five percent.
Coal conversion facility tax - Exemption - Lignite research tax - Imposition. (Effective
after June 30, 2026, and through June 30, 2031) (Contingent repeal - See note)
1. a. Excluding the generation tax imposed under subsection 3 of section 57 -60-02, a
coal conversion facility is entitled to a partial exemption from the coal conversion
state share of the tax imposed under section 57-60-02 equal to:
(1) Ninety percent of the coal conversion state share for taxable production
after June 30, 2026, and through June 30, 2027.
(2) Eighty percent of the coal conversion state share for taxable production after
June 30, 2027, and through June 30, 2028.
(3) Seventy percent of the coal conversion state share for taxable production
after June 30, 2028, and through June 30, 2029.
(4) Sixty percent of the coal conversion state share for taxable production after
June 30, 2029, and through June 30, 2030.
(5) Thirty-five percent of the coal conversion state share for taxable production
after June 30, 2030, and through June 30, 2031.
b. The coal conversion facility shall pay a lignite research tax equal to eighty -five
percent of the tax imposed under section 57 -60-02 before the application of the
exemption under subdivision a, multiplied by five percent.
c. For purposes of this subsection, "coal conversion state share" means eighty-five
percent of the tax imposed under section 57 -60-02, excluding the generation tax
imposed under subsection 3 of section 57-60-02.
2. a. An electrical generating plant is entitled to a partial exemption from the
generation tax imposed under subsection 3 of section 57-60-02 equal to:
(1) Ninety percent of the generating plant state share for taxable production
after June 30, 2026, and through June 30, 2027.
(2) Eighty percent of the generating plant state share for taxable production
after June 30, 2027, and through June 30, 2028.
(3) Seventy percent of the generating plant state share for taxable production
after June 30, 2028, and through June 30, 2029.
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(4) Sixty percent of the generating plant state share for taxable production after
June 30, 2029, and through June 30, 2030.
(5) Thirty-five percent of the generating plant state share for taxable production
after June 30, 2030, and through June 30, 2031.
b. The electrical generating plant shall pay a lignite research tax equal to the tax
imposed under subsection 3 of section 57 -60-02 before the application of the
exemption under subdivision a, multiplied by five percent.
c. For purposes of this subsection, the "generating plant state share" means one
hundred percent of the generation tax imposed under subsection 3 of section
57-60-02.
57-60-03. Measurement and recording of synthetic natural gas, byproducts,
beneficiated coal, or electricity produced and carbon dioxide capture.
The production of synthetic natural gas, byproducts, beneficiated coal, or electrical power
and data necessary to determine the amount of carbon dioxide captured must be measured at
the place of production or generation, and any person subject to the imposition of the taxes
provided by this chapter shall maintain devices to measure and record the cumulative periodic
totals of synthetic natural gas, byproducts, beneficiated coal, and electrical power generated
and data necessary to determine the amount of carbon dioxide captured. Any person subject to
the taxes imposed by this chapter shall maintain accurate records of the daily and monthly totals
of synthetic natural gas, beneficiated coal, and electrical power generated and subject to such
taxes and data necessary to determine the amount of carbon dioxide captured. On or before
October first of each year, the operator of any coal gasification plant shall file a report with the
department of environmental quality listing the quantity of byproducts produced during the year
ending June thirtieth of that year. The commissioner shall have access to such records at
reasonable times and places.
57-60-04. Payment of taxes for plants other than electrical generating plants - When
taxes due - When delinquent.
Repealed by S.L. 1983, ch. 648, § 14.