Expired, Repealed, and Archived North Dakota Incentives and Laws

The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.

Autonomous Vehicle (AV) Pilot Program

Archived: 03/10/2022

The North Dakota Department of Transportation (NDDOT) will begin an AV pilot program to convert trucks into self-driving vehicles to improve work zone safety through impact protection technology. The pilot vehicle will be deployed in the Fargo area. This program is funded by the Federal Highway Administration’s Accelerated Innovation Deployment program. For more information, see the NDDOT website.

Agriculturally-Based Fuel Production Wage and Salary Tax Credit

Repealed: 04/28/2017

The following was repealed by House Bill 1050, 2017: New ethanol, biodiesel, green diesel, and biogas producers may be eligible for an income tax credit equal to a percentage of wages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 House Bill 1050, 2017)

Biofuels Infrastructure Grants

Expired: 04/30/2013

Through the Biofuels Blender Pump Program, the North Dakota Department of Commerce offers cost-share grants of up to $5,000 per fueling pump, up to $20,000 per retail location, to motor fuel retailers who install qualified biofuel blender pumps and associated equipment. Qualified retailers are also eligible for grants of up to $14,000 at each retail location for tanks and piping installed at the same time the blender pump is installed. A qualified ethanol retail blender pump must:

  • Dispense a blend of gasoline and ethanol in the ratio the purchaser selects;
  • Meet an industry standard and carry a warranty for compatibility with dispenser components and storage and piping systems;
  • Have at least four hoses and dispense either a blend of 10% ethanol (E10) or the minimum blend percentage the U.S. Environmental Protection Agency has approved for use in all vehicles, a blend of at least 20% ethanol (E20), and E85; and
  • Comply with all alternative fuel, biofuel, and flexible fuel requirements established by law.

Grant recipients must continue to sell biofuel blends for at least 12 months after receiving funding. This incentive is available through April 30, 2013. (Reference North Dakota Century Code 17-09)

Regional Biofuels Corridor

Archived: 08/31/2012

North Dakota has joined Indiana, Iowa, Kansas, Michigan, Minnesota, Nebraska, South Dakota, and Wisconsin in adopting a cooperative initiative under the Energy Security and Climate Stewardship Platform Plan (Platform). The Platform establishes a regional biofuels corridor program and directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the Midwest for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.

Biodiesel Equipment Tax Exemption

Expired: 06/30/2012

Equipment sold to a facility that enables the facility to sell diesel fuel containing at least 2% biodiesel or green diesel is exempt from sales tax. The biodiesel or green diesel must meet applicable ASTM specifications. (Reference Senate Bill 2034, 2011, and North Dakota Century Code 57-39.2-04 and 57-43.2-01)

Hydrogen Fuel Tax Exemption

Expired: 06/30/2012

The sale of hydrogen fuel to power an internal combustion engine or fuel cell is exempt from the state sales tax. (Reference North Dakota Century Code 57-39.2.04)

Ethanol Blend Tax Rate Reduction

Expired: 01/01/2008

A state excise tax of $0.23 per gallon is imposed on all special fuels sold or used in the state, including compressed natural gas and liquefied petroleum gas. The sale of ethanol blended gasoline fuel containing 85% ethanol (E85) is exempt from the $0.23 per gallon tax, and is instead subject to a reduced tax of $0.01 per gallon on all E85 fuel sold or used in the state. (Reference North Dakota Century Code 57-43.1-02 and 57-43.2-02)