North Dakota requires each electrical generating plant which processes or converts coal into electrical power and which has at least one electrical energy generation unit with a capacity of 10,000 kilowatts or more to file a monthly report and remit a tax which is the sum of two separate calculations, one based on installed capacity and one on kilowatt hours of electricity produced for the purpose of sale.

SB 2221 provides tax reductions for a coal conversion facility operator.

A coal conversion facility that achieves a 20% carbon capture rate (as defined by the legislation) is entitled to a 20% reduction in State’s coal conversion facility tax (North Dakota Century Code: 57-60-02).

That facility would also be entitled to an additional reduction of 1 percent of the coal conversion facility tax for every additional 2 percentage points of carbon dioxide captured.

A maximum 50 percent reduction in coal conversion tax is allowed for the capture of 80% or more of the carbon dioxide emissions.