Energy

Relating to a limited exemption for development incentive wells; to amend and reenact sections 57‑51‑02.6, 57‑51‑05, and 57‑51.1‑01 of the North Dakota Century Code, relating to the temporary exemption for oil and gas wells employing a system to avoid flaring, an exemption from gross production tax for gas produced from certain enhanced oil recovery projects, and the definition of development incentive well; to provide an effective date; and to provide an expiration date.

Relating to a partial exemption from the coal conversion facilities tax and the imposition of a lignite research tax, allocation of the coal conversion facilities privilege tax and the lignite research tax, and an exemption from the coal severance tax; to repeal section 57‑60‑02.2 of the North Dakota Century Code, relating to the exemption from the coal conversion facilities tax and the imposition of a lignite research tax; to provide an effective date; to provide a contingent effective date; and to provide an expiration date.

Relating to the oil extraction tax rate reduction for oil produced from a new well drilled and completed outside the Bakken and Three Forks formations; to provide for a legislative management study; and to provide an effective date.

Relating to qualifications for renewable electricity and recycled energy credits; and to repeal sections 49‑02‑28, 49‑02‑29, 49‑02‑30, 49‑02‑31, 49‑02‑32, 49‑02‑33, and 49‑02‑34 of the North Dakota Century Code, relating to the state renewable and recycled energy objectives, public reporting, qualifications and applications to the statewide objectives, the purchase and retirement of renewable energy certificates to meet the objectives, verification of generation and the purchase of certificates, and economic evaluations on the use of renewable and recycled energy.

HB 1474 proposes a new tax based on the square footage of residential properties in North Dakota, replacing the traditional ad valorem tax for many homeowners. It directly affects residential property owners (including single-family homes, condos, and townhouses), local governments that collect taxes, and businesses installing solar/wind/geothermal systems through new tax credits. Key provisions include establishing a per-square-foot tax rate on both land and structures, modifying existing property tax credit rules for energy-efficient installations, and requiring county boards to adjust tax assessments under new valuation requirements. The bill also repeals an existing exemption for new residential properties and sets limits on how much local governments can levy through this new tax structure. The bill failed to pass in the North Dakota legislature on March 11, 2025, with 5 votes in favor and 42 against.