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Committee hears industry push to extend coal conversion tax relief for 10 years
Summary
Utilities, lignite producers and county stakeholders told the House Finance and Taxation Committee that extending a state-level coal conversion tax holiday will support grid reliability, jobs and long-term investments; at least one Mercer County commissioner urged maintaining county tax revenue and proposed distribution changes.
Representative Anna Novak introduced House Bill 1279, which would extend state-level coal conversion tax relief for lignite-fired power plants. Novak framed the measure as support for affordable, reliable electricity in communities reliant on lignite generation and said the bill would not affect the coal severance tax or local portions of the coal conversion tax.
"Lignite power plants are the backbone of North Dakota's energy grid," Novak said, urging the committee to support the bill and arguing producers face rising maintenance, regulatory and insurance costs that could be passed to ratepayers if plants close. She also said the bill provides a 10-year state-level tax holiday for conversion taxes to give plants planning certainty.
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