Despite a veto by Gov. Mike Rounds, R-S.D., a bill that modifies the state's tax refund program for wind farm development will become law, BusinessWeek reports.
The House voted 49-19 and the Senate voted 33-0 on Monday to override the governor's veto of the measure, which gives special tax refunds to construction projects involving the generation of electricity from wind.
The governor and lawmakers have worked to reform South Dakota's refunds for large construction projects. The refunds are intended to encourage industrial projects, agricultural processing facilities and other endeavors to come to South Dakota, but lawmakers want to limit the refunds to keep more money in the state treasury.
Until now, state law gave back varying percentages of sales taxes and contractor's excise taxes paid when projects such as wind farms, ethanol plants or pipelines are built. Current law gives tax refunds of 90% to projects costing $600 million or more.
Rounds says the bill is flawed because it gives wind projects a better deal than is given to other large construction projects.
SOURCE: BusinessWeek Â
