Sales Tax Exemption for Hydrogen Generation Facilities

This incentive is aimed at commercial and industrial hydrogen producers rather than households, so it generally won't apply to a typical home. If you buy hydrogen to power a fuel cell or an internal combustion engine in North Dakota, the sale of that hydrogen is exempt from sales tax. Contact the North Dakota Tax Commissioner's office to confirm whether your situation qualifies.

Hydrogen generation facility customers in North Dakota can avoid sales tax on equipment used to produce and store hydrogen, including containers, pressure vessels, piping, tubing, fittings, gaskets, controls, valves, gauges, pressure regulators and safety relief devices. To claim it, the customer must send the Tax Commissioner a written request describing the equipment, its cost, and how it lets the business expand operations. The Tax Commissioner notifies the taxpayer in writing if the project qualifies, so build that approval step into project timelines.

This is a state sales tax exemption in North Dakota for commercial and industrial hydrogen producers. It exempts the sale of hydrogen used to power an internal combustion engine or fuel cell, and exempts equipment used by hydrogen generation facilities for producing and storing hydrogen. Eligibility is determined case by case: the taxpayer submits a written request to the Tax Commissioner with an equipment description, cost, and explanation of business expansion, and the Commissioner responds in writing.