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SD Panel Urges Cut In Wind Farm Construction Taxes



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A legislative task force has recommended that the state cut construction taxes for wind farms to help South Dakota compete with nearby states in attracting the projects.
   
However, the Wind Energy Task Force will leave it up to Gov. Dennis Daugaard and the full Legislature to decide exactly how to reduce the contractor's excise tax and sales tax that apply to construction costs of wind farms. Developers have said South Dakota lags behind surrounding states in the generation of electricity from wind farms and will have trouble catching up because of higher construction taxes.

South Dakota charges a 4 percent sales tax on materials used in construction and a 2 percent excise tax on a contractor's gross receipts. The issue is complicated by uncertainty about some tax refund programs.
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