North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1571

Introduced

1/20/25

Refer

1/20/25

Report DNP

1/28/25

Caption

The sales tax exemption for raw materials, single-use product contact systems, and reagents used for biologic manufacturing; and to provide an effective date.

Impact

The proposed changes in HB 1571 could have a significant impact on how tax incentives are evaluated and implemented in North Dakota. By mandating periodic reviews, the state legislature seeks to better understand the effectiveness of these incentives and adjust them as necessary to ensure they continue to contribute to meaningful economic growth. This could lead to a more transparent and efficient allocation of tax incentives to foster industry development while also potentially reducing expenditures on ineffective or outdated programs.

Summary

House Bill 1571 aims to amend several sections of the North Dakota Century Code regarding economic development tax incentives. The bill stipulates a structured analysis of various tax incentives related to economic development, ensuring that each incentive undergoes a comprehensive review every six years. This systematic evaluation is intended to enhance the state’s accountability regarding tax incentives provided to businesses, including those involved in biologic manufacturing, agriculture, and other sectors benefitting from tax exemptions. Furthermore, the bill aims to refine the process concerning sales tax exemption for raw materials and reagents specifically used in biologic manufacturing.

Contention

One notable point of contention surrounding HB 1571 is the balance between encouraging business growth through substantial tax incentives and ensuring that such incentives are financially responsible for the state. Critics may argue that these incentives can lead to a significant loss of tax revenues, thus placing a burden on public services. Moreover, the timing of implementation for certain provisions of the bill has prompted discussions about the immediate impact on contractors who may face changes in the sales and use tax regulations affecting material purchases.

Additional_points

The bill reflects a growing trend among states to revisit and refine their economic development strategies to remain competitive and attract diverse industries. By specifically addressing biologic manufacturing—a sector that is increasingly vital for economic and technological advancements—HB 1571 positions North Dakota as a state ready to leverage opportunities in this evolving industry.

Companion Bills

No companion bills found.

Previously Filed As

ND HB1455

Evaluation of economic development tax incentives and a sales and use tax exemption for raw materials, single-use product contact systems, and reagents used for biologic manufacturing; to provide for a legislative management report; to provide an effective date; and to provide an expiration date.

ND HB1511

Evaluation of economic development tax incentives, a sales and use tax exemption for materials used to construct or expand a coal processing facility that utilizes coal as a feedstock, and severance and sales and use tax exemptions for coal used in a coal processing facility that utilizes coal as a feedstock; and to provide an effective date.

ND SB2006

The salary of the state tax commissioner, property assessment increase notices, and use tax exemptions; to provide an exemption; to provide for a transfer; to provide an effective date; and to provide an expiration date.

ND HB1513

A use tax exemption for materials used to construct, expand, or upgrade a hospice care facility owned by a hospice program; and to provide an effective date.

ND HB1282

A sales and use tax exemption for feminine hygiene products; and to provide an effective date.

ND HB1370

A sales tax exemption for sales of grain bins; to provide an effective date; and to provide an expiration date.

ND HB1402

A sales tax exemption for sales of used clothing sold by a thrift store of a nonprofit corporation; and to provide an effective date.

ND HB1430

Construction, expansion, or environmental upgrade of a renewable feedstock refinery; and to provide an effective date.

ND HB1498

A sales and use tax exemption for certain sales made to senior citizen organizations; and to provide an effective date.

ND HB1014

Fuel production facility loan guarantee reserve funding, the housing incentive fund, the powers of the North Dakota pipeline authority, definitions for the clean sustainable energy authority, a clean sustainable energy authority line of credit, and an appropriation from the state fiscal recovery fund; to provide a contingent appropriation; to provide for a transfer; to provide an exemption; to provide for a study; to provide for a report; to provide a statement of legislative intent; to provide an effective date; and to declare an emergency.

Similar Bills

ND HB1546

Use tax on contractors; and to provide an effective date.

ND HB1295

The carbon dioxide pipeline exemption, payments in lieu of taxes for certain carbon dioxide pipeline property, and the carbon dioxide capture and injection sales tax exemption; and to provide an effective date.

NV SB226

Revises provisions governing governmental financial administration. (BDR 28-494)

CA AB777

State property: transfer: University of California.

MI SB0571

Labor: hours and wages; prevailing wage; require on certain solar and wind energy projects, and require contractors to obtain a registration to perform work on certain projects. Amends secs. 1, 2, 8 & 22 of 2023 PA 10 (MCL 408.1101 et seq.) & adds secs. 2a & 25a.