Renewable Energy System Exemption (South Dakota)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Renewable Energy System Exemption|
|Incentive Type||Property Tax Incentive|
|Applicable Sector||Commercial, Industrial, Residential, Agricultural|
|Eligible Technologies||Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps, Municipal Solid Waste, CHP/Cogeneration, Hydrogen, Solar Pool Heating, Anaerobic Digestion, Small Hydroelectric|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||50,000 or 70% of the assessed value of eligible property, whichever is greater, is exempt|
|Eligible System Size||Less than 5 MW|
|Maximum Incentive||50,000 or 70% of the assessed value of eligible property, whichever is greater|
|Program Administrator||S.D. Department of Revenue and Regulation|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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.
|Contact Name||Wendy Semmler|
|Department||S.D. Department of Revenue and Regulation|
|Division||Property and Special Tax Division|
|Address||445 East Capitol Avenue|
|Place||Pierre, South Dakota|
|Phone 2||(605) 773-6729|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||SDCL § 10-4-42 et seq.|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.