In 2001, North Dakota established property tax reductions for commercial wind turbines constructed before 2011. Originally, the law reduced the taxable value of centrally-assessed* wind turbines with a capacity of 100 kilowatts (kW) or greater from 10% to 3% of assessed value, resulting in a property tax savings of 70%. This law has since been amended, resulting in the establishment of slightly different tax valuation procedures for some installations.
Currently, all centrally-assessed wind turbines with a capacity of 100 kW or greater that are constructed after June 30, 2006, and before January 1, 2015, are valued at 1.5% of their assessed value, as are units constructed after April 30, 2005, and before July 1, 2006, and for which a power purchase agreement (PPA) was executed after April 30, 2005, and before January 1, 2006. For the latter category, the reduced valuation applies only for the duration of the original PPA. All other centrally-assessed wind turbines with a capacity of 100 kW or greater are valued at 3% of assessed value.
North Dakota also offers a property tax exemption for some types of locally-assessed renewable energy systems.
* While most property tax assessments in North Dakota take place at the local level, the State Board of Equalization values investor-owned utilities (IOUs) for property tax purposes. Thus, this reduction will generally apply only to IOUs engaged in the operation of commercial wind farms.
|Incentive Type:||Property Tax Incentive|
|Administrator:||North Dakota Office of State Tax Commissioner|
|Eligible Renewable/Other Technologies:||
|Incentive Amount:||70% or 85% reduction in property taxes on centrally-assessed wind turbines, depending on project circumstances|
|Eligible System Size:||Minimum size: 100 kW|
|Name:||ND Century Code 57-06-14.1|
|Date Enacted:||2001 (subsequently amended)|
|Organization:||Office of the State Tax Commissioner|
600 E. Boulevard Ave., Dept. 127
Bismarck ND 58505-0599
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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