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
Bioscience, Financial Service, Manufacturing, Oil & Gas
Black Hills Corp.
Tyson Fresh Meats
Citibank South Dakota NA
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.
EthanolInfrastructureIncentives: 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.
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.
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.
“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