All Roll Calls
Yes: 238 • No: 37
North DakotaHB 12792025 Regular SessionHouseWALLET
AN ACT to amend and reenact sections 57-60-02, 57-60-02.1, 57-60-02.2, 57-60-14, and 57-61-01 of the North Dakota Century Code, 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.
Sponsored By: Anna S. Novak (Republican)
Became Law
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 2 costs, 2 mixed.
Five-year tax breaks for new units
Beginning July 1, 2025, new or repowered power‑generation units get tax relief. They pay 85% less of the capacity‑based tax for five years from first taxable production. Their per‑kWh production tax is also exempt for five years. If a unit cannot generate for 18 straight months, its tax is cut by the repair‑cost to original‑cost ratio until it returns to service.
Coal facility taxes and rates
Beginning July 1, 2025, operators of coal conversion facilities pay a monthly tax. Most facilities pay 2% of gross receipts; sales of capital assets are not taxed. Power plants also pay a base tax set by 0.65 mills times 60% of installed capacity times the hours in the month, plus 0.25 mills per kWh sold. Coal gasification plants pay the greater of 2% of receipts or $0.135 per 1,000 cubic feet, capped at 110 million cubic feet per day. Coal beneficiation pays $0.20 per ton or 1.25% of receipts, whichever is more; output above 80% of design capacity or used inside a conversion facility is exempt from that beneficiation tax.
Small lignite research tax applies
Beginning July 1, 2025, when 85% of a coal conversion tax is exempt, the facility must pay a small lignite research tax instead. It equals 5% of the exempted 85% (about 4.25% of the original base amount). For power plants, it equals 5% of the per‑kWh generation tax. The money goes to the lignite research fund.
Counties can cut plant and mine taxes
Starting July 1, 2025, a county may cut up to 15% of a plant’s coal conversion tax through June 30, 2026; this does not cover the per‑kWh tax. After June 30, 2026, a county may waive the remaining 15% capacity tax for up to five years from a unit’s first taxable production. During the transition, counties may also cut up to 70% of the coal severance tax for mines, but not past June 30, 2026. Any tax still collected from an exempted unit or facility goes to that county. After the transition, the law removes the county severance‑tax waiver power.
How coal tax money is split
The state treasurer allocates receipts at least each quarter. During the transition, lignite research tax money goes to the research fund and other coal conversion tax money goes to the county. After June 30, 2026, 15% of coal‑conversion receipts go to the county and 85% to the state general fund; per‑kWh generation tax goes to the state fund. Five percent of the state’s share is moved to the lignite research fund. Each county’s yearly total cannot be less than the certified amount from the prior year; any shortfall is reported by January 10 and paid by March 1.
Sponsors & Cosponsors
Sponsor
Anna S. Novak
Republican • House
Cosponsors
Mike Berg
Republican • House
Jared C. Hagert
Republican • House
Craig Headland
Republican • House
Jeremy Olson
Republican • House
SuAnn Olson
Republican • House
Todd Porter
Republican • House
Bill Tveit
Republican • House
Keith Boehm
Republican • Senate
Dale Patten
Republican • Senate
Paul J. Thomas
Republican • Senate
Roll Call Votes
House vote • 5/2/2025
Second reading, passed, yeas 68 nays 21
Yes: 68 • No: 21
Senate vote • 5/2/2025
Second reading, passed as amended, yeas 44 nays 2
Yes: 44 • No: 2
Senate vote • 4/21/2025
Second reading, passed as amended, yeas 45 nays 2
Yes: 45 • No: 2
House vote • 2/6/2025
Second reading, passed, yeas 81 nays 12
Yes: 81 • No: 12
Actions Timeline
Filed with Secretary Of State 05/06
6/11/2025HouseSigned by Governor 05/05
5/17/2025HouseSent to Governor
5/2/2025HouseSigned by Speaker
5/2/2025HouseSigned by President
5/2/2025SenateSecond reading, passed, yeas 68 nays 21
5/2/2025HouseConference committee report adopted
5/2/2025HouseReported back from conference committee, in place of, placed on calendar
5/2/2025HouseSecond reading, passed as amended, yeas 44 nays 2
5/2/2025SenateConference committee report adopted
5/2/2025SenateReported back from conference committee, in place of, placed on calendar
5/2/2025SenateAppoint Sen. Klein to replace Sen. Weber on conference committee
5/1/2025SenateConference committee appointed Bekkedahl Weber Powers
4/25/2025SenateConference committee appointed Headland Hagert Porter
4/22/2025HouseRefused to concur
4/22/2025HouseReturned to House (12)
4/21/2025HouseSecond reading, passed as amended, yeas 45 nays 2
4/21/2025SenateReported back, do pass, place on calendar 15 1 0
4/18/2025SenateCommittee Hearing 09:30
4/4/2025SenateRereferred to Appropriations
4/2/2025SenateAmendment adopted
4/2/2025SenateReported back amended, do pass, amendment placed on calendar 5 1 0
4/1/2025SenateCommittee Hearing 02:30
3/17/2025SenateIntroduced, first reading, referred Finance and Taxation Committee
2/17/2025SenateReceived from House
2/7/2025Senate
Bill Text
Enrollment
HOUSE BILL NO. 1279 with Conference Committee Amendments
HOUSE BILL NO. 1279 with Senate Amendments
INTRODUCED
Prepared by the Legislative Council staff for Representative Hagert
Prepared by the Legislative Council staff for Senator Weber
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