Rebates and tax credits in South Dakota

Money toward an HRV or ERV

Programs that pay toward the unit itself. Some take the money off at the distributor, so ask whether an installer’s price already includes it.

We didn’t find a program in South Dakota that names HRVs or ERVs. Your electric and gas utilities are still worth asking: search “[utility] HRV rebate” and “[utility] ERV rebate”.

Federal home energy rebates

Federal money that South Dakota runs. HEAR has a category for “insulation, air sealing, and ventilation” worth up to $1,600 for households under 150% of area median income; each state decides what counts as ventilation. ENERGY STAR’s table for HEAR says this category requires ENERGY STAR certification, and ENERGY STAR’s U.S. criteria for ventilation cover fans, not HRVs or ERVs, so ask the program whether an HRV or ERV counts before relying on it. HOMES pays toward whole-home upgrades modeled to save energy.

Air sealing and insulation

These programs are more common than ventilation rebates, and sealing a house is often what makes it need planned fresh air. If a program is sealing yours, ask whether it requires ventilation afterward and whether it pays for it.

We didn’t find a statewide or large-utility air sealing program in South Dakota. Check your utilities’ rebate pages.

State tax credits

We didn’t find a South Dakota tax credit for ventilation, air sealing or insulation, and couldn’t confirm there is none.

Low-income help

The federal Weatherization Assistance Program can pay for air sealing, insulation and, where needed, ventilation at no cost to households that qualify by income. In South Dakota it’s run by South Dakota Department of Social Services; work is done by four community action programs (Inter-Lakes Community Action, Rural Office of Community Services, Grow South Dakota, Western South Dakota Community Action).

Before you sign

1. Don’t start work yet. Many programs need pre-approval, a participating contractor or a test first, and work begun early often can’t qualify.
2. Write down your electric and gas utilities. Rebates usually follow the utility, not the town.
3. Read the conditions: a listed contractor, a qualifying model, your heating fuel, income limits, and install and claim deadlines.
4. Ask each installer whether any discount is already in their price, and who files the paperwork.
5. Get it in writing: each rebate, who applies for it, and what happens to the price if it’s denied.

More on costs and how to check: What drives the cost of ventilation and How to compare quotes.

Worth knowing

• The sources for South Dakota's decision are a trade association factsheet (Building Performance Association) and a university energy center (NC Clean Energy Technology Center), not a South Dakota state page. [s_bpa_jun26, s_nccetc]
• Black Hills Energy's 2026 residential rebate form for South Dakota and northeast Wyoming covers smart thermostats, air purifiers, dehumidifiers, smart power strips, heat pump water heaters, central air conditioners, air-source heat pumps and ductless mini splits. It has no insulation, air sealing or ventilation rebates. Equipment must be installed January 1 to December 15, 2026, with applications received by December 31, 2026. [s_bhe_sd_2026]
• Otter Tail Power's 2025 programs guide lists no South Dakota residential rebates for HRV/ERV, ventilation, insulation or air sealing. [s_otp_2025]
• Otter Tail Power's proposed 2027-2029 South Dakota energy efficiency plan, in a South Dakota Public Utilities Commission filing (docket EL26-023), lists a new $500 residential energy recovery ventilation rebate. This is a proposal for 2027 to 2029, not a current offer. [s_otp_sd_plan]