Renewable Energy Property Tax Exemption

North Dakota offers a property tax exemption for solar, wind, or geothermal energy devices installed in new or existing buildings or structures. This exemption, aimed at promoting the adoption of renewable energy, applies to systems whether they stand alone or are incorporated into conventional energy systems. However, for hybrid systems that include both renewable and conventional energy components, only the renewable portion is eligible for the tax break. The exemption is valid for a five-year period immediately following the system’s installation. Property owners interested in taking advantage of this incentive must apply through their local tax assessor or the county director of tax equalization. It’s important to note that while this policy generally applies to locally-assessed properties, the State Board of Equalization is responsible for the valuation of investor-owned utilities for property tax purposes in North Dakota.