The list below contains summaries of all North Dakota incentives and laws related to Natural Gas.
New ethanol, biodiesel, green diesel, and biogas producers may be eligible for an income tax credit equal to a percentage of wages and salaries paid each year. A corporation involved in processing an agricultural product, including ethanol, biodiesel, and biogas feedstocks, may claim an income tax credit equal to 1% of wages and salaries paid during the tax year for each of the first three years of operation and 0.5% of wages and salaries paid during the tax year for the fourth and fifth years. Only corporations doing business in North Dakota for the first time are eligible. A corporation created from the reorganization or acquisition of an existing business does not qualify, nor does a business that receives a property or income tax exemption under North Dakota Century Code 40-57.1. (Reference North Dakota Century Code 57-38-30.1)
Alternative fuel retailers must label retail dispensing units with the price, name, and main components of the alternative fuel or alternative fuel blend being sold. The labeling must follow established labeling specifications for petroleum-based fuels. An alternative fuel producer may provide the retailer with a label promoting the benefits of the alternative fuel if the label meets the specified requirements. Alternative fuel is defined as a fuel used in an engine or vehicle other than a petroleum-based fuel, including biodiesel and green diesel. Alcohol fuel blends containing at least 1% of alcohol by volume must also be clearly labeled at the dispenser and on any price advertisements. (Reference Senate Bills 2034 and 2127, 2011, and North Dakota Century Code 19-10-03.1 and 19-10-03.3)
A special excise tax rate of 2% is imposed on the sale of propane (liquefied petroleum gas) and a tax of $0.04 per gallon is imposed on all special fuels sales, including compressed natural gas. Retailers must obtain a license from the Office of the State Tax Commissioner to sell special fuels. Exceptions apply. (Reference Senate Bill 2197, 2011, and North Dakota Century Code 57-43.2-02 through 57-43.2-05)