Sales and Use Tax Exemption for Electrical Generating Facilities
Administered by Office of State Tax Commissioner
This exemption is not designed for homeowners but rather for commercial and industrial facilities. If you own a large-scale renewable energy installation (solar, wind, geothermal, etc.) with at least 100 kW capacity that sells electricity or uses it for business purposes, you may qualify for sales tax exemptions on equipment and materials used to build or expand the facility—request an exemption in writing from the North Dakota Tax Commissioner with details about your equipment and costs.
You can help commercial and industrial clients reduce project costs by identifying qualifying renewable energy installations (100+ kW minimum capacity) and supporting their written exemption requests to the Tax Commissioner. The exemption covers sales tax on building materials, production equipment, and related tangible personal property; for wind equipment, purchases must fall between July 2011 and January 2017, while non-wind facilities must demonstrate they sell electricity or use it for business operations.
This sales tax exemption applies to commercial and industrial electrical generating facilities across multiple renewable and alternative technologies (solar, wind, geothermal, biomass, fuel cells, etc.) with minimum 100 kW capacity. Applicants must submit written requests to the Tax Commissioner including equipment descriptions, costs, and explanation of operational expansion; wind facilities have a specific purchase window (July 2011–January 2017) while other technologies require proof of electricity sales or on-site business use. The Tax Commissioner reviews requests and notifies taxpayers of approval in writing.
Program details
- Program ID
- 4988
- Last updated
- 1/12/2026
Eligibility
- Sectors
- commercial industrial
- Technologies
- geothermal electric solar thermal electric solar photovoltaics wind (all) biomass hydroelectric municipal solid waste combined heat & power fuel cells using non-renewable fuels landfill gas anaerobic digestion
Program summary
Electrical generating facilities are exempt from sales and use taxes. The exemption is granted for the purchase of building materials, production equipment, environmental upgrade equipment, and other tangible personal property that is used for constructing or expanding the facility. In order to qualify, the facility must have at least one electrical generation unit with a capacity of at least 100 kilowatts (kW). For wind facilities, the equipment must be purchased between July 2011 and January 2017. For non-wind and non-coal facilities, the facility must sell the electricity it produces or use it on site for a business-related activity. In order to receive the exemption, a request must be made in writing to the Tax Commissioner and must include a description of the equipment, the cost of the equipment and an explanation of how the equipment enables the business to expand its operations. The Tax Commissioner will notify the taxpayer in writing if the project qualifies for an exemption.
Contact & resources
- Contact email
- taxinfo@nd.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
