ND SB2368

Surface owners of property with one or more oil or gas wellheads are entitled to an income tax credit of $200 per taxable year for each wellhead located on that property.

Passthrough entities (partnerships, S corporations, LLCs, and similar entities) claiming the credit must determine the credit amount at the entity level and pass it through to partners, shareholders, or members proportionally based on their interests.

The tax commissioner must calculate the state general fund revenue loss from the credit by June 1 each year, and the state treasurer shall transfer that amount from the lands and minerals trust fund to the general fund by June 30.

The bill creates a new section to chapter 57-38 and adds a new subdivision to section 57-38-30.3 of the North Dakota Century Code.

The Act is effective for taxable years beginning after December 31, 2010.