South Dakota Legislature Approves Tax Subsidy for Wind Farms

March 13, 2008 | Roger McEowen


On March 13, the South Dakota Governor Rounds signed H.B. 1320 into law.  The legislation exempts power-generating wind farms from most state and local taxes, but subjects them to an alternative annual tax  that is based on the number of kilowatts a wind farm can produce.  Also, the bill specifies that any company owning or leasing a wind farm is subject to retail sales and service taxes.  But, wind energy facilities and energy transmission equipment is exempt for other state, county, municipal and district taxes.