Sales and Use Tax Exemption for Gas Processing Facilities

December 04, 2023


In North Dakota, materials purchased for building or expanding gas processing facilities are exempt from sales and use taxes. Building materials, equipment, and other tangible personal property are eligible for the exemption. In addition, any tangible property used to build or expand a facility that compresses, processes, or gathers gas may qualify for the exemption. Equipment purchases that exceed $100,000 that are purchased in order to reduce emissions, increase efficiency, or enhance the reliability of a gas processing facility may also qualify for the exemption. 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. 

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: North Dakota
Incentive Type: Sales Tax Incentive
Web Site:
Administrator: Office of State Tax Commissioner
Start Date:
Eligible Renewable/Other Technologies:
  • Landfill Gas
Incentive Amount: 100% exemption


Name: ND Century Code § 57-39.2-04.2 et seq.


Name: General Information
Organization: Office of the State Tax Commissioner
Address: 600 East Boulevard Ave.
Bismarck ND 58505-0599
Phone: (701) 328-7088

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.