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South Dakota

South Dakota

Incentives/Policies for Renewables & Efficiency

Printable Version
Renewable Energy Facility Sales and Use Tax Reimbursement   

Last DSIRE Review: 10/11/2013
Program Overview:
State: South Dakota
Incentive Type: Sales Tax Incentive
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Municipal Solid Waste, CHP/Cogeneration, Hydrogen, Electricity Produced from Waste Heat , Anaerobic Digestion, Small Hydroelectric
Applicable Sectors: Commercial, Industrial, Installer/Contractor, Agricultural
Amount:Up to 100% of the tax paid on project costs
Equipment Requirements:Project costs for a new or expanded facility must exceed $20 million.
Project costs for equipment upgrades must exceed $2 million.
Start Date:04/01/2013
Authority 1:
Date Enacted:
Date Effective:
SB 235
03/25/2013
03/25/2013
Summary:

South Dakota allows for a reinvestment payment up to the total amount of sales and use taxes paid for certain new or expanded renewable energy systems, equipment upgrades to existing systems, and manufacturing facilities that produce renewable energy equipment. SB 235 referred specifically to wind energy facilities, but also allows for "power generation facilities" and facilities defined by the Governor's Office of Economic Development (GOED) as targeted industries. Based on that authority, the GOED chose to extend this incentive to other types of renewable energy. 

To qualify, the project costs associated with a new or expanded facility must exceed $20 million, and the costs associated with equipment upgrades must exceed $2 million. Eligible project costs include the amount paid by the project owner in money, credits, property, or other consideration associated with a project. Also included are the costs associated with land, labor, and equipment, including towers, wind turbine generators, power collection systems, and electric interconnection systems.

Applicants must file an application with the GOED within 90 days of starting construction. In reviewing the application, the Board of Economic Development will consider the likelihood that the investment would have occurred without the reinvestment payment, and other criteria listed in the legislation and rules to be developed by the Board. The reinvestment payment may be transferred to other entities. 


 
Contact:
  Hunter Roberts
South Dakota Governor's Office of Economic Development
711 E. Wells Ave.
Pierre, SD 57501
Phone: (605) 773-3301
E-Mail: Hunter.Roberts@state.sd.us
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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.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.