South Dakota: tax incentives, credits and advisors
South Dakota's incentives run through the Governor's Office of Economic Development, including reinvestment payments for large projects, jobs grants, an E15 fuel tax refund and county property tax abatements on new structures.
Facts checked 2026-10-27 against the official sources linked below.
Below are the major South Dakota incentives we could verify against an official source, grouped by type. This is not an exhaustive list of every state program. Credits flagged Transferable can be sold or assigned to another taxpayer under state rules; see transferable state tax credits. Each row shows the date we last checked it.
South Dakota jobs, investment and enterprise zones incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Reinvestment Payment Program | Cash reinvestment payment | Owners of projects over $20 million, or equipment upgrades over $2 million, that would not have occurred without the payment; apply to the Board of Economic Development within 90 days of starting construction | Up to the South Dakota sales and use tax paid on project costs, as approved by the Board of Economic Development; paid by GOED after the project owner files an Affidavit for Reinvestment Payment | Not a tax credit; the permit and payment are assignable and transferable and may be used as collateral (SDCL 1-16G-60) | Paid in cash (not a credit) | Active | South Dakota GOED, Reinvestment Payment Program; SDCL 1-16G-59 (board may approve up to sales and use tax paid); SDCL 1-16G-60 (permit assignable and transferable) Last verified 2026-10-27 |
| South Dakota Jobs Grant | Grant | Companies relocating or expanding in South Dakota with new or expanded facility project costs under $20 million, or equipment upgrades under $2 million | Not stated | No (grant) | No (grant) | Active | South Dakota GOED, Reinvestment Payment Program Last verified 2026-10-27 |
| Discretionary property tax abatement for new structures | Property tax abatement | New industrial, commercial and non-residential agricultural structures or additions valued over $30,000, at county commission discretion | County commissions may forgive 0% to 100% of property taxes on the new structure for five years; liability cannot fall below the pre-construction amount | No (abatement) | No | Active | South Dakota GOED, Taxes and Business Costs Last verified 2026-10-27 |
South Dakota renewable energy incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| E15 fuel tax refund | Fuel tax refund | Licensed fuel marketers dispensing E15 at South Dakota retail premises and meeting alternative fuel compatibility requirements | Five cents multiplied by the gallons of E15 dispensed at the marketer's South Dakota retail pumps in the preceding year; prorated among approved applicants if funds fall short; apply within 30 days after the calendar year ends | Not stated | Paid as a refund | Active for calendar years 2025 to 2029 | South Dakota GOED, E15 Tax Refund Last verified 2026-10-27 |
Advisors located in South Dakota
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Common questions
What is the South Dakota Reinvestment Payment Program?
A cash payment of up to the state sales and use tax paid on project costs, for new or expanded facilities over $20 million or equipment upgrades over $2 million.
Can a South Dakota reinvestment payment be transferred?
Yes. Under SDCL 1-16G-60, the permit and reinvestment payment are assignable and transferable.
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