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Bill would limit tax breaks for long CO2 pipelines used for sequestration; sponsors cite changing scale of projects
Summary
Representative Jay Olson told the committee House Bill 1295 would narrow tax exemptions for CO2 pipelines so the state exemptions apply only to pipelines used exclusively for enhanced oil recovery, not to pipelines whose primary purpose is permanent sequestration.
Representative Jay Olson told the House Finance and Taxation Committee that House Bill 1295 as amended would remove tax exemptions for carbon dioxide pipelines when the CO2 is destined for permanent geologic storage and would preserve exemptions for pipelines used exclusively for enhanced oil recovery (EOR). Olson said the Century Code provisions currently cited in law (for example, North Dakota Century Code 57-6-17.1 for centrally assessed property taxation and section 57-39.2-04 for sales and use tax) were enacted when the original exemptions were intended for in-state uses and not for long interstate trunk lines.
"Allowing a 10-year exemption to continue will be very costly for the state," Olson said, adding that a multi-state corridor of pipelines could multiply the state…
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