Incentives
State Incentives
Local Infrastructure Improvement Program
Provides grants to aid in funding the construction of infrastructure associated with an economic development project. This program is open to any local development corporation or political subdivision of the state.
South Dakota WORKS
Offers business/commercial loans to companies in need of working capital. Loans can be used to cover start-up costs, payroll, and construction. Loans are for 1-5 years, with a maximum loan of $1 million.
South Dakota Jobs Grant Program
A discretionary program reserved for highly competitive projects establishing new or expanding existing operations with a total project cost of less than $20,000,000 or equipment upgrades less than $2,000,000. Amount of the award may not exceed state sales/use tax paid on eligible project costs.
Revolving Economic Development & Initiative (REDI) Fund
This discretionary program offers low-interest loans of up to 45% of total project costs to assist business attraction and expansion projects. The REDI Fund provides permanent financing for the purchase of land and associated site improvements, construction, acquisition, renovations of buildings and equipment. In addition, the fund can be used to offset fees, services and other costs associated with construction. Interest rates are 2%, and loans are amortized for up to 20 years on a building and 10 years on equipment, with a balloon payment due after 5 years. Companies should secure matching funds and be able to provide a 10% minimum equity contribution before applying.
Reinvestment Payment Program
A discretionary program reserved for highly competitive projects establishing new or expanding existing operations with a total project cost of more than $20,000,000 or equipment upgrades in excess of $2,000,000. Amount of the award may not exceed state sales/use tax paid on eligible project costs.
Proof of Concept Fund
Loan program providing up to $25,000 in advances for qualified applicants. Applicants must submit research highlighting the technical and economic likelihood of an innovation prior to commercialization. Three avenues within the POC fund include research funding, market analysis funding and patent funding. Funds may not be used to pay salaries of researchers or project leaders, legal fees for incorporation and general business operating expenses. A 10% matching contribution is required.
MicroLOAN
This discretionary program assists small businesses with their projects of less than $750,000. Loans can be used for permanent working capital, equipment or real estate financing .The maximum loan amount under this program is $100,000 for a period of up to 10 years, and carry a 3% interest rate.
Ethanol Infrastructure Incentives
There are two Ethanol Infrastructure Incentives Programs. The Ethanol Flex Pump Program provides matching funds for fuel retailers that provide pumps dispersing ethanol blends. The Ethanol Storage Tank Program also matches funds for the installation of below or above ground storage tanks that allow blender pumps to operate. Both programs are designed to increase the availability and demand for higher ethanol blends and to reduce the demand for foreign oil.
Local Incentives
Wall Economic Development Corporation
The City of Wall has established a 501(c) 6 Economic Development Corporation that will facilitate the ability to sell public property for the purpose of economic development per SD codified law.
- Established an industrial/business park in the city
- Actively marketing the park and city for business expansion and development
- Provide relocation incentive for workforce
- Discretionary, formula-based property tax abatement that can be used to essentially waive property taxes for five years
Tax Incentive Resolution
5-year 100% rebate on city portion of property taxes. Discretionary formula: Rebate =(Valuation/1000 X city levy)