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Combined Heat and Power Partnership

Renewable Energy Facility Sales and Use Tax Reimbursement

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated10/23/2013
Incentive TypeTax
Incentive Administrator/Contact OfficeSouth Dakota Governor's Office of Economic Development
Incentive Initiation Date4/1/2013
Incentive Size and Funding SourceSouth Dakota allows for a reinvestment payment up to 100% of sales and use taxes paid for certain new or expanded renewable energy systems, equipment upgrades to existing systems, and manufacturing facilities that produce renewable energy equipment.
Eligible RecipientInstallers or contractors with projects involving "power generation facilities" and facilities in targeted industries, such as renewable energy, as defined by the Governor's Office of Economic Development.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaTo qualify, the project costs associated with a new or expanded facility must exceed $20 million, and the costs associated with equipment upgrades must exceed $2 million.

Eligible project costs include the amount paid by the project owner in money, credits, property, or other consideration associated with a project. Also included are the costs associated with land, labor, and equipment, including towers, wind turbine generators, power collection systems, and electric interconnection systems.
Other Incentive DetailsApplicants must file an application with the Governor's Office of Economic Development within 90 days of starting construction. In reviewing the application, the Board of Economic Development will consider the likelihood that the investment would have occurred without the reinvestment payment, and other criteria listed in the legislation and rules to be developed by the Board. The reinvestment payment may be transferred to other entities.
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