South Dakota

Incentives/Policies for Renewables & Efficiency

Wind and Transmission Construction Tax Refund

Last DSIRE Review: 01/02/2013

Program Overview:

State:	South Dakota
Incentive Type:	Sales Tax Incentive
Eligible Renewable/Other Technologies:	Wind
Applicable Sectors:	Commercial, Industrial
Amount:	Varies by construction costs
Maximum Incentive:	55% of taxes paid
Start Date:	1/1/2010
Expiration Date:	12/31/2012
Authority 1: Date Enacted: Date Effective: Expiration Date:	SDCL § 10-45B-16, et seq. 3/29/2010 1/1/2010 12/31/2012

Summary:

Note: This refund is only available for costs incurred between January 1, 2010 and December 31, 2012, except for performance retainage amounts. No new installations are eligible for the incentive after January 1, 2013.

In March 2010, South Dakota established a tax refund for new or expanded wind-energy facilities, new or upgraded electric transmission lines and associated facilities, and business facilities that manufacture or distribute wind or transmission components. This refund, which applies to sales or use taxes and contractors' excise taxes on project costs, is available to facilities with a construction date on or after January 1, 2010.

In general, the amount of the tax refund is a percentage of the taxes paid, as follows:

For project costs less than $10 million, there is no refund.
For project costs of $10 million or more but less than $40 million, the refund is 45% of the taxes paid.
For project costs of $40 million or more, there is a refund of 55% of the taxes paid.

Refunds will not be awarded for any project cost incurred and paid on or after December 31, 2012, except for performance retainage amounts (not to exceed 10%) related to the project.

Contact:

Colleen Skinner
S.D. Department of Revenue and Regulation
Property and Special Tax Division
445 East Capitol Avenue
Pierre, SD 57501-3100
Phone: (605) 773-5120
Phone 2: (605) 773-6729
E-Mail: colleen.skinner@state.sd.us
Web Site: http://www.state.sd.us/drr2/propspectax/assessor/power_light.htm

Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

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