Sales and Use Tax Exemption for Electrical Generating Facilities

Last updated: August 28, 2018

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:North Dakota
Incentive Type:Sales Tax Incentive
Web Site:http://www.nd.gov/tax/data/upfiles/media/2015-tax-incentives-for-businesses-web_1.pdf?20161028134025
Administrator:Office of State Tax Commissioner
Eligible Renewable/Other Technologies:Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Municipal Solid Waste, Combined Heat & Power, Fuel Cells using Non-Renewable Fuels, Landfill Gas, Anaerobic Digestion

Authorities

Name:ND Century Code § 57-39.2-04.2
Name:ND Century Code § 57-40.2-04.2

Summary

Electrical generating facilities are exempt from sales and use taxes. The exemption is granted for the purchase of building materials, production equipment, and any other tangible personal property that is used for constructing or expanding the facility. In order to qualify, the facility must have at least one electrical generation unit with a capacity of at least 100 kilowatts (kW).  For wind facilities, the equipment must be purchased between July 2011 and January 2017. For non-wind and non-coal facilities, the facility must sell the electricity it produces or use it on site for a business-related activity. In order to receive the exemption, a request must be made in writing to the Tax Commissioner and must include a description of the equipment, the cost of the equipment and an explanation of how the equipment enables the business to expand its operations. The Tax Commissioner will notify the taxpayer in writing if the project qualifies for an exemption. For more information, see the North Dakota Tax Incentives for Business brochure.

 

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