HB 1439 Summary

• Exempts carbon dioxide pipelines and associated equipment constructed after 1996 from property taxation during construction and for the first 10 full taxable years after initial operation when used for secure geologic storage or enhanced oil and natural gas recovery.

• Provides sales and use tax exemption for tangible personal property used to construct or expand systems that compress, gather, collect, store, transport, or inject carbon dioxide for secure geologic storage or enhanced recovery purposes.

• Exempts incremental production from tertiary recovery projects injecting more than 50 percent carbon dioxide produced from coal for 20 years (outside Bakken/Three Forks formations) or 10 years (within Bakken/Three Forks formations) from oil extraction taxes.

• Classifies coal conversion facilities, carbon dioxide capture systems, and equipment used for secure geologic storage as personal property exempt from ad valorem taxes except on land, with taxes under the chapter serving as in-lieu payments.

• Effective dates: Section 3 effective July 1, 2019; Sections 1 and 4 effective for taxable years beginning after December 31, 2018; Section 2 effective for taxable events occurring after June 30, 2019.