Use tax exemption for power plant construction, production, environmental upgrade, and repowering equipment and oil refinery or gas processing plant environmental upgrade equipment
N.D. Cent. Code § 57-40.2-04.2
in effect57-40.2-04.2. Use tax exemption for power plant construction, production,
environmental upgrade, and repowering equipment and oil refinery or gas processing
plant environmental upgrade equipment.
1. As used in this section, unless the context otherwise requires:
a. (1) "Environmental upgrade" means an investment greater than twenty-five
million dollars or one hundred thousand dollars per megawatt of installed
nameplate capacity, whichever is less, in machinery, equipment, and related
facilities for reducing emissions or increasing efficiency at an existing power
plant.
(2) "Environmental upgrade" for purposes of a process unit means an
investment greater than one hundred thousand dollars in machinery,
equipment, and related facilities for reducing emissions, increasing
efficiency, or enhancing reliability of the equipment at a new or existing
process unit.
b. "Operator" means any person owning, holding, or leasing a power plant or
process unit.
c. "Power plant" means:
(1) An electrical generating plant, and all additions to the plant, which
processes or converts coal in its natural form or beneficiated coal into
electrical power and which has at least one single electrical energy
generation unit with a capacity of fifty thousand kilowatts or more.
(2) A wind-powered electrical generating facility, on which construction is
completed before January 1, 2015, and all additions to the facility, which
provides electrical power through wind generation and which has at least
one single electrical energy generation unit with a nameplate capacity of
one hundred kilowatts or more.
(3) Any other type of electrical power generating facility excluding the types of
power plants identified in paragraphs 1 and 2 which has a capacity of one
hundred kilowatts or more and produces electricity for resale or for
consumption in a business activity.
d. "Process unit" means an oil refinery or gas processing plant and all adjacent units
that are utilized in the processing of crude oil or natural gas.
e. "Production equipment" means machinery and attachment units, other than
replacement parts, directly and exclusively used in the generation, transmission,
or distribution of electrical energy for sale by a power plant.
f. "Repowering" means an investment of more than two hundred million dollars or
one million dollars per megawatt of installed nameplate capacity, whichever is
less, in an existing power plant that modifies or replaces the process used for
converting coal in its natural form or beneficiated coal into electric power.
2. Sales of production or environmental upgrade equipment that is delivered on or after
January 1, 2007, and used exclusively in power plants or repowering existing power
plants or in process units are exempt from the tax imposed by this chapter.
3. Sales of tangible personal property, other than production or environmental upgrade
equipment, which is used in the construction of new power plants or to expand existing
power plants or to add environmental upgrades to existing power plants or repowering
existing power plants or to add environmental upgrades to existing process units are
exempt from the tax imposed by this chapter.
4. To receive the exemption at the time of purchase, the operator must receive from the
commissioner a certificate that the tangible personal property or production equipment
the operator intends to purchase qualifies for the reduced rate or exemption. If a
certificate is not received prior to the purchase, the operator shall pay the applicable
tax imposed by this chapter and apply to the commissioner for a refund.
5. If the tangible personal property or production equipment is purchased or installed by a
contractor subject to the tax imposed by this chapter, the operator may apply for a
refund of the difference between the amount remitted by the contractor and the
reduced rate or exemption imposed or allowed by this section.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t57c40-2.pdf#nameddest=57-40p2-04p2Fetched: 10/16/2026