CHSlogoGRAND FORKS — A bill introduced in the North Dakota Legislature would provide incentives to construct new fertilizer or chemical processing plants in the state.

The proposal, Senate Bill 2035, would exempt sales and use taxes for materials used to construct or expand a fertilizer or chemical processing facility.

State economic development officials and a state senator said the bill aims to encourage the use of natural gas that has become abundant thanks to oil development in the western part of the state.

The Northern Plains Nitrogen plant is projected to cost more than $2 billion, according to its website, but the sales tax exemption won’t apply to all of that cost. Th  similar CHS Inc. facility planned for Spiritwood, carries a $3 billion price tag.

CHS spokeswoman Annette Degnan says CHS is grateful for all the time and effort invested by local and state government staff and agencies in support of its proposed nitrogen fertilizer manufacturing facility at Spiritwood, N.D.,”