South Dakota allows for a reinvestment payment up to the total amount of sales and use taxes paid for certain new or expanded renewable energy systems, equipment upgrades to existing systems, and manufacturing facilities that produce renewable energy equipment. S.B. 235 referred specifically to wind energy facilities, but also allows for "power generation facilities" and facilities defined by the Governor's Office of Economic Development (GOED) as targeted industries. Based on that authority, the GOED chose to extend this incentive to other types of renewable energy. 

To qualify, the project costs associated with a new or expanded facility must exceed $20 million, and the costs associated with equipment upgrades must exceed $2 million. Eligible project costs include the amount paid by the project owner in money, credits, property, or other considerations associated with a project. Also included are the costs associated with land, labor, and equipment, including towers, wind turbine generators, power collection systems, and electric interconnection systems.

Applicants must file an application with the GOED within 90 days of starting construction. In reviewing the application, the Board of Economic Development will consider the likelihood that the investment would have occurred without the reinvestment payment, and other criteria listed in the legislation and rules to be developed by the Board. The reinvestment payment may be transferred to other entities.