South Dakota Law Changes Taxes for Wind Companies
South Dakota Governor Mike Rounds signed a bill March 20th that will tax wind energy companies like other businesses, rather than like most utilities. The new law will charge wind energy developers a 2% excise tax on construction materials and services, a 4% state sales tax, and local property taxes, rather than taxes on both real estate and personal property. Property taxes will be due on the foundations and towers, but not on the components housed in the nacelle. It's estimated that the new bill will cut as much as 70% off wind developers' property tax bills.
The law goes into effect July 1st; FPL Energy is then expected to move forward on a $42 million, 40-MW project in South Dakota.
Source: March 21st Wind Energy Weekly.