The South Dakota legislature passed tax reform laws in 2003 to encourage the building of wind power farms, but because the cost of a wind turbine has risen to $2 million, property taxes are hurting further investment in this renewable energy.
The new proposal would cut property taxes by basing them on a wind farm’s generation capacity. It would add a new state tax on a wind farm’s gross receipts, and companies that build wind towers could get refunds on the gross receipts tax to help build transmission lines and other facilities.
Recent comments