Renewable Energy System Exemption
| Program Type | Property Tax Incentive |
|---|---|
| Technologies | Photovoltaic (Solar Panels), Solar Space Heating, Solar Water Heating, other renewable energy sources |
| Amount | Up to $50,000 or 70% of the assessed property value, whichever is greater |
| Required Documentation | Receipts for equipment and installation for tax purposes |
| Official Web Site | http://legis.state.sd.us/sessions/2010/Bills/SB58ENR.pdf |
This generous property tax exemption is available for most types of property, including residential, commercial, and agricultural, making it a great benefit whether want solar power for your home or your farm. Any property with a solar energy system that generates 5 MW or less of electricity or other forms of energy can potentially qualify, so this can even include solar heating systems.
The tax incentive applies to eligible properties on which the system is installed, including the value of the system itself, and exempts you from $50,000 of property tax or 70% of the assessed value of the property, whichever is greater. Geothermal heating systems have a three to four year limit on the exemption, for commercial and residential properties, respectively, but fortunately, solar energy systems have no such limit. When combined with federal incentives for solar energy, this tax exemption can allow you to enjoy substantial financial perks for saving the planet, even in the absence of net metering and other rebates.
