#16 South Dakota


9.00 out of 10 in Taxation and Regulation

7.91 out of 10 in Workforce Quality

7.42 out of 10 in Living Environment

Right to Work?


A Government to Support Business

South Dakota’s business tax burden is ranked No. 2 by the Tax Foundation, with no corporate income tax, personal income tax, personal property tax or business inventory tax. There are also generous incentives. One challenge the state continues to face is workforce recruitment and retention. While South Dakota has been outpacing the nation in population growth for the past few years, there’s also a growing need for talent.

From the Governor

“Economic development isn’t just about business retention and recruitment, and it’s not just about job creation and housing development, either….Economic development means laying the groundwork for a community to thrive by developing education programs that will provide new opportunities and investing in our future workforce.” —Gov. Dennis Daugaard

Key Industries

Bioscience, Financial Service, Manufacturing, Oil & Gas

Key Companies

3M Co.
Black Hills Corp.
LodgeNet Interactive
NorthWest Corp.
Shaw Industries
Tyson Fresh Meats
Walmart
Hy-Vee
Citibank South Dakota NA
Larson Manufacturing

Key Contacts

SD Governor’s Office of Economic Development

Scott Stern, Commissioner
605-773-4633
711 E. Wells Avenue
Pierre, SD 57501
Scott.Stern@sdreadytowork.com
http://www.sdreadytowork.com/home.aspx

Key Incentives

Low or No Taxes: No corporate income tax, personal income tax, personal property tax, business inventory tax or inheritance tax.

South Dakota Jobs Grant Program: Offers funds to offset the upfront costs associated with relocating or expanding operations or upgrading equipment. Offered for facility projects with costs of less than $20 million and equipment upgrades of less than $2 million.

Ethanol Infrastructure Incentives: Offers support for the development of the local ethanol industry, with funds to cover up to 90% of the cost of pump storage tank installation.

Heartland Energy ONE Incentive: Offers a special energy-only rate fixed for three years for new retail loads with an approximate demand of one megawatt or higher.

EDCs

South Dakota Governor’s Office of Economic Development: sdreadytowork.com: sdreadytopartner.com

Sioux Falls Development Foundation: siouxfallsdevelopment.com

Forward Sioux Falls: forwardsiouxfalls.com

Rushmore Region Economic Development Alliance: rushmoreregion.com

Highlighted Program or Initiative

The Build Dakota Scholarship Fund was the first of its kind in the nation and offers students state-funded, full scholarships to technical institute programs determined to meet “high-need” jobs in the state.

Big Deals

  • Farmers Business Network announced in August 2016 an expansion at its national operations center in Sioux Falls with 40 new jobs.
  • Otter Tail Power Co. announced in March 2017 plans to seek regulatory approval to construct a gas-fired electricity-generation station in Deuel County.
  • Hendrix Genetics announced in June 2017 it will invest $25 million in turkey breeding operations in Beresford.
  • Win Chill broke ground in June 2017 on a 205,000-square-foot, full-service refrigerated foods warehouse and distribution center in Foundation Park.

C-Suite Testimonials

“The state of South Dakota has been good to us. As a company, as a business, as a biotech industry. this is the place to be. And we truly believe that one of the successes we had was just making the decision all those years ago to come to this great state and grow our business here.” —Eddie Sullivan, CEO, SAB Biotherapeutics

“It’s more than just a low-cost of doing business… it’s more about the Midwest work ethic, the humble and genuine attitude of the people who work and live here. That’s really what makes it worth it.” —Craig Snyder, CEO, Sioux Falls Tower

“We feel very fortunate to have started our business in South Dakota—the state consistently ranks as one of the top locations in America to start and run a business.” —Brandon Maddox, owner, Dakota Silencer

- Advertisement -

CEO1000

CEO1000 Tracker

From the schools they went to to the types of companies they run, CEO1000 is tracking the trends among the CEOs of the 1,000 largest U.S. companies.

CEO CONFIDENCE INDEX

CEO Confidence In U.S. Business Conditions Falls To Lowest Level Of 2018

The CEO Confidence Index has taken a tumble, thanks a trade war that CEOs say is beginning to materialize and a fear a change in the weather.
- Advertisement -

BEST & WORST STATES FOR BUSINESS

Best and Worst States For Business

Are you looking to relocate or expand? Evaluate each state's strengths with Chief Executive's 2018 Best & Worst States for Business.

CEO OF THE YEAR

CEO of the Year

Once a year, we celebrate the achievements of a CEO, honored for his or her success in and dedication to business, shareholders and customers.

SUBSCRIBE TO CHIEF EXECUTIVE

Sign Up to Receive Chief Executive’s Magazine and e-Newsletters

Chief Executive’s publications are designed to help CEOs do their jobs better and run their businesses more effectively. Subscribe here.