Tax breaks for biofuels, grain bin construction among ag bills passed in North Dakota

BISMARCK — Among the many flurry of farming-related payments in entrance of the North Dakota Legislature are three that would offer tax breaks on agriculture-related development.

Simply previous the halfway level of the 2023 session, it has been a busy session for agriculture, with the highest headlines being about modifications in company farming legal guidelines to advertise livestock and retaining farmland out of overseas possession.

Legislators returned to the Capitol on March 1 after a mid-session recess. Right here’s a have a look at a number of the payments which are nonetheless alive within the second half of the session:

HB 1430:

Creates a sale and use tax exemption for supplies utilized in development, enlargement, or environmental improve of a renewable feedstock refinery, which would come with ethanol crops and biodiesel.

Jeff Zueger, CEO of Midwest Ag Vitality — which owns two ethanol crops in North Dakota, Blue Flint in Underwood and Dakota Spirit in Spiritwood — can be a director on the North Dakota Ethanol Producers Affiliation board.

In written testimony, he mentioned “a number of crops have labored to decrease the carbon depth of our gasoline by implementing carbon seize and storage tasks. Sustainable aviation gasoline (SAF) is a promising alternative that may open a brand new marketplace for low carbon North Dakota ethanol. Midwest AgEnergy is at the moment engaged in evaluating the potential to supply SAF from the low carbon ethanol we produce as can be others that make use of carbon discount applied sciences.”

HB 1370:

Gross sales tax exemption for supplies to construct grain bins. In written testimony, Matt Perdue of the North Dakota Farmers Union mentioned: “The grain bin gross sales tax exemption is modeled after a coverage that has existed in Iowa since 2019. Throughout conversations with the brand new soybean crush crops, NDFU and different teams realized about these amenities’ curiosity in increasing on-farm storage. We consider HB 1370 is a crucial step towards supporting that enlargement.”

SB 2279:

Supplies a property tax exemption for ag storage amenities and another enhancements. To qualify for the exemption, it could possibly’t be rented to somebody aside from a relative.

Whereas HB 1430 talked about above may present a tax break for carbon seize and storage development, Sen. Jeff Magrum filed eight payments associated to strengthening the place of landowners in opposition to the trouble to construct carbon seize pipelines within the states.

Solely two have survived to this point:

SB 2251

: This requires survey crews to acquire written permission from property house owners. There are at the moment a number of lawsuits involving pipeline firm Summit Carbon Options and landowners over surveyor entry.

SB 2313

: If property is taken by eminent area, a courtroom should enhance the award by 33%.

Each these payments are actually within the Home Vitality and Pure Sources Committee.

The most important ag coverage change will probably be in redefining feedlots and dairies to make them exempt from state legislation proscribing company possession of farm. Whereas North Dakota Farmers Union didn’t endorse HB 1371,

it did present enter into amendments that helped it cross the Home

.

Listed here are a pair different payments selling livestock which have survived:

• HB 1423

  to develop uniform zoning throughout counties and townships.

• SB 2373

  creates a livestock-friendly county designation.

One thing legislators can agree on is retaining North Dakota land out of overseas possession.

HB 1135

, which might

bar overseas governments and companies they management from buying, buying or holding any curiosity in agricultural land within the state

, handed 93-0.

HB 1503

,

which seeks to

prohibit overseas possession of actual property in North Dakota,

handed the Home 93-0.

Some western North Dakota farmers love cloud seeding, others do not.

HB 1166,

which may

restrict a county’s means to get state funding for climate modification

, handed the Home on a 69-22 vote.

Rep. Dawson Holle, a dairy farmer from Morton County, backed two milk-related payments:

Attain Jeff Seashore at jbeach@agweek.com or name 701-451-5651 (work) or 859-420-1177.