SD law deciphers small renewable energy incentives

PIERRE, S.D.

South Dakota Gov. Mike Rounds has signed a bill streamlining the state's complex maze of tax incentives for small renewable energy projects.

The new law makes the first $50,000 of the assessed value of a small to medium renewable energy property, or 70 percent of the assessed value if that figure is greater, exempt from real property tax.

That means residents won't have to do anything to get the tax benefit, and assessors won't have revisit properties because of a few rooftop solar panels or a small wind turbine.

Supporters of the change say the existing structure was a confusing mess of tax credits.

The new law applies to renewable energy facilities of less than 5 megawatts of capacity.