Large Wind Property Tax Reduction (North Dakota)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Large Wind Property Tax Reduction|
|Incentive Type||Property Tax Incentive|
|Applicable Sector||Commercial, Investor-Owned Utility|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||70% or 85% reduction in property taxes on centrally-assessed wind turbines, depending on project circumstances|
|Eligible System Size||Minimum size: 100 kW|
|Program Administrator||North Dakota Office of State Tax Commissioner|
|Date added to DSIRE||2001-05-21|
|Last DSIRE Review||2014-07-29|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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.
|Contact Name||Public Information - State Tax Commissioner|
|Department||Office of the State Tax Commissioner|
|Address 2||600 East Boulevard Ave.|
|Place||Bismarck, North Dakota|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||ND Century Code 57-06-14.1|
|Date Enacted||2001 (subsequently amended)|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.