Wind and Transmission Construction Tax Refund

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.