Wind and Transmission Construction Tax Refund

June 26, 2013


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.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: South Dakota
Incentive Type: Sales Tax Incentive
Web Site:
Administrator: S.D. Department of Revenue and Regulation
Start Date: 1/1/2010
Eligible Renewable/Other Technologies:
  • Wind (All)
Incentive Amount: Varies by construction costs
Maximum Incentive: 55% of taxes paid


Name: SDCL § 10-45B-16, et seq.
Date Enacted: 3/29/2010
Effective Date: 1/1/2010
Expiration Date: 12/31/2012


Name: South Dakota Department of Revenue
Address: 445 East Capitol Avenue
Pierre SD 57501-3185
Phone: (605) 773-3311

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.