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HB 1571

Route 66; removing expiration date of the Oklahoma Route 66 Commission; effective date.

2025 Regular Session Introduced by Todd Gollihare and 1 co-sponsor

HB 1571 directs six-year reviews of economic incentives and repeals the sales tax exemption for biologic manufacturing inputs, raising costs for biologics.

Becomes law without Governor's signature 05/07/2025
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Bill Summary · HB 1571

Summary — HB 1571 (North Dakota)

Status: Second reading — failed to pass (yeas 30, nays 58)
Introduced: December 11, 2024
Primary sponsors: Representatives Steiner, Kasper, Maki, Wolff, Toman, Motschenbacher; Senators Magrum, Paulson, Wobbema

Purpose

HB 1571 would (1) direct the Legislative Management interim committee to examine and ensure periodic (six‑year) comprehensive evaluations of a broad set of state economic development tax incentives, and (2) eliminate a sales/use tax exemption for certain inputs used in biologic manufacturing by repealing the statutory exemption and removing the exemption from contractor use‑tax provisions.

Key provisions

  1. Six‑year review requirement for economic development tax incentives

    • Amends NDCC § 54‑35‑26(3) to require the interim committee assigned the study examine economic development tax incentives, complete analyses it designates during the interim, and approve a plan so that each listed incentive receives a complete analysis within every six‑year period.
    • The bill explicitly lists numerous incentives that must be included in the analysis plan, including (but not limited to):
      • Renaissance zone credits/exemptions
      • Research expense credit; seed capital, angel fund, and internship credits
      • Workforce recruitment credit and 21st century manufacturing/animal ag workforce incentives
      • New or expanding business exemption; new jobs credit (from withholding)
      • Manufacturing and recycling equipment sales tax exemption; enterprise information technology equipment exemption; data‑center equipment and software exemptions
      • Sales/use tax exemptions for materials used to construct fertilizer/chemical processing facilities, coal processing facilities, carbon‑dioxide handling for enhanced recovery, and other listed industry exemptions

  2. Repeal and removal of biologic manufacturing exemption

    • Repeals NDCC § 57‑39.2‑04.19 (the statutory sales tax exemption for raw materials, single‑use product contact systems, and reagents used for biologic manufacturing).
    • Amends NDCC § 57‑40.2‑03.3 (use tax on contractors) to remove references to and the contractor use‑tax exemption for those biologic manufacturing inputs. The bill contains time‑limited language in the section (text shows different effective windows through June 30, 2025 and through June 30, 2029), indicating transitional timing for contractor tax treatment; the final effective timing would be set in the bill’s effective date provision.

  3. Effective date

    • The bill text states it provides an effective date; the specific date is not included in the excerpt.

Who would be affected

  • Biologic manufacturers and any entities purchasing raw materials, single‑use product contact systems, or reagents for biologic production in North Dakota would lose an existing sales/use tax exemption if the repeal were enacted.
  • Contractors who purchase property used in construction for biologic manufacturing facilities would no longer be able to rely on the contractor use‑tax exemption for those inputs.
  • The Tax Commissioner and Department of Revenue would need to implement the statutory changes.
  • The Legislative Management interim committee and staff would take on recurring analytic responsibilities to evaluate listed incentives on a six‑year schedule.

Potential impacts

  • Revenue: Repeal of the exemption could increase state sales and use tax revenues (amount not specified in the bill text).
  • Businesses: Removal of the exemption would raise the effective cost of inputs for biologic manufacturing and could affect project economics and siting decisions.
  • Oversight: The mandated six‑year review cycle would increase legislative oversight of many economic development incentives and could lead to policy changes based on the reviews.

Note: The provided materials included text fragments from other states’ bills with the same bill number; this summary concentrates on the North Dakota HB 1571 content cited in the package.

Compiled from official sources — confirm details with the bill’s official record.

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