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Incentive Detail

Renewable Energy Systems Exemption
Eligible States	SD
Type	Tax Exemption
Area of Interest	Renewable Energy
Description	This incentive exempts renewable energy systems on residential and commercial property from local property taxes. For residential systems, the exemption applies to the entire assessed value of residential system. The minimum value of the credit is the actual installed cost of the system. For commercial systems, the exemption applies to 50 percent of the installed cost of commercial systems, and cannot be transferred when the property is sold under any circumstances. The exemption may be claimed for three years after installation. After three years, the property owner can claim a portion of the exemption for three subsequent years according to the following schedule: Year 1: 75 percent of the exemption ; Year 2: 50 percent of the exemption; Year 3: 25 percent of the exemption. The property tax exemption is adjusted to include any federal renewable energy income tax credit which may be available at the time the owner applies for the exemption. This exemption is not allowed for systems which produce energy for resale.
Eligible Organizations	Livestock Producer, Commercial/Industrial Business, Residential, Small Business
How to Apply	Applicability of the exemption depends on the characteristics of each individual system, and approval is granted by the Director of Equalization on a case-by-case basis.
For More Information	http://puc.sd.gov
Primary Contact	Steve Wegman South Dakota Public Utilities Commission 500 East Capitol Avenue Pierre, SD 57501 (605) 773-3201 steve.wegman@state.sd.us

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