South Dakota

Financial Incentive: Property tax exemption 

Type: Residential 

For: Biomass 

Incentive Amount: Applies to the first $50,000 or 70% of the assessed value of the renewable energy property, whichever is greater

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Summary: South Dakota state law SDCL 10-4-44 provides a local property tax exemption for renewable energy systems less than 5 megawatts in size. Wind, solar, biomass, hydrogen, hydroelectric and geothermal systems used to produce electricity or energy are considered renewable resource systems. The continuous exemption applies to the first $50,000 or 70% of the assessed value of the renewable energy property, whichever is greater. For geothermal systems that produce energy only and no electricity, such as geothermal heat pumps that produce energy, but not electricity, the exemption is limited to the first four continuous years for residential facilities and the first three continuous years for commercial facilities. Contact the South Dakota Department of Revenue or your local Director of Equalization for more information.

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