In March 2010, South Dakota established a new property tax incentive that replaced two existing property tax incentives for renewable energy. Facilities that generate electricity using wind, solar, hydro, hydrogen generated by another eligible resource, or biomass resources are eligible for this incentive, as are facilities that generate other forms of energy using solar or geothermal resources.
For eligible facilities less than 5 megawatts (MW) in capacity, all real property used or constructed for the purpose of producing electricity is assessed in the same manner as other real property. However, the first $50,000 or 70% of the assessed value of eligible property, whichever is greater, is exempt from the real property tax. For geothermal systems that produce thermal energy, but not electricity, this exemption is limited to the first four continuous years for residential systems and to the first three continuous years for commercial systems.
|Incentive Type:||Property Tax Incentive|
|Administrator:||S.D. Department of Revenue|
|Eligible Renewable/Other Technologies:||
|Incentive Amount:||$50,000 or 70% of the assessed value of eligible property, whichever is greater, is exempt|
|Maximum Incentive:||$50,000 or 70% of the assessed value of eligible property, whichever is greater|
|Eligible System Size:||Less than 5 MW|
|Name:||SDCL § 10-4-42 et seq.|
|Name:||South Dakota Department of Revenue|
445 East Capitol Avenue
Pierre SD 57501-3185
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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