Financing/Incentives

Tax Refunds

South Dakota offers tax refunds on sales, use and contractos' excise taxes.

How it Works

To be eligible for the refund:

The total cost of the project must be a minimum of $10 million and

The project must involve the construction of a new facility or the expansion of an existing facility

Refunds are issued for the following:

Sales tax paid on equipment

Contractors’ excise tax

The sales tax the contractor pays on materials used in the new construction

Project Costs
Refund

Less than $10 million
None

$10 to $15 million
25%

$15 to $20 million
33%

$20 to $40 million
50%

$40 to $60 million
67%

$60 to $600 million
75%

More than $600 million
90%

The amount of the refund on the sales, use and contractors’ excise tax is determined by the total project costs.

Refund percentages apply strictly to the dollar ranges listed above.

Refund permits in South Dakota are valid for thirty-six (36) months if project costs are $60 million or less. Refund permits in South Dakota are valid for seventy-two (72) months if project costs are more than $60 million. All project costs within that time frame are cumulative.

An application must be approved within 180 days of the start of construction.

Construction Refund Checklist for Project Owner

Construction Refund Checklist for Project Owner (Word)

For additional information, contact Mark Boehm at 800-872-6190.