Economic development incentives

South Dakota

Midwestern US

BLS & Co. periodically revises the state incentive pages to ensure our firm is providing the most current information on legislative and regulatory developments affecting available programs. Updates will be posted in the near future. In the interim, please call BLS & Co. with any questions at 609.924.9775 or reach out via email at info@BLSstrategies.com.

SPOTLIGHT PROGRAMS

South Dakota Jobs Grant & Reinvestment Payment Programs: A discretionary program, that can provide grants to help offset upfront costs associated with expanding or relocating to South Dakota. It is reserved for highly competitive projects with a total project cost of less than $20,000,000 or equipment upgrades with project costs less than $2,000,000. The amount of the award may not exceed state sales/use tax paid on eligible project costs.

TAX EXEMPTIONS

Businesses in South Dakota are not subject to corporate income tax, personal income tax, personal property tax, business inventory tax, or inheritance tax.

DIRECT FINANCIAL ASSISTANCE

Local Infrastructure Improvement Program: Provides grants to aid in funding the construction or reconstruction of public infrastructure associated with an economic development project. This program is open to any local development corporation or political subdivision of the state.

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.   Loans under this program have a low, fixed interest rate and are amortized based on the useful life of assets financed 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.

South Dakota WORKS: Offers commercial loans to companies in need of working capital. Loans can be used to cover working capital, interim construction needs on new buildings, and equipment. Loans are for 1-5 years, with a 3% fixed interest rate and amortization matched to a useful asset life with a balloon payment due after 5 years. Loans are typically less than a maximum loan of $1 million.

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.

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 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.  


JOB TRAINING PROGRAMS

Workforce Development Program:  Provides funding through matching grants for new employee training and current employee re-training.  The program is designed as a 50/50 match-funding source.  Every Workforce Development dollar must be matched with private sector contributions, either financial or in-kind. Companies must pay at least $15 an hour and have wages commensurate to prevailing wages for comparable jobs in the labor market.

Dakota Seeds: An internship program for high school and post-secondary students. Companies can receive matching funds up to $2,000 per intern. Internships must have a link to science, technology, engineering, mathematics, accounting or manufacturing.

Economic Development Partnership Program: Provides matching grants for the purpose of developing or expanding community development programs. Funds may be used for equipment and training needs, new staff or to promote existing part-time employees.

Last Updated: May 2023

Tax Credits

Incentives & Exemptions


Grant and Financing Programs

Special Zoning

Job Training

Financing & Financial Assistance

Local Incentives

Other Programs

Interested in Learning More?

Contact us today at 609.924.9775 or info@blsstrategies.comto schedule an initial incentives strategy consultation.
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