CEO Guide to Site Selection

#9

South Dakota

CEO Rank on Best & Worst States for Business

MORE BUSINESSES RUSHING TO THE RUSHMORE STATE

South Dakota continues to attract new expansions and groundbreakings with its pro-business policies and tapered response to the pandemic. United States Bureau of Economic Analysis (BEA) data from March 2021 found the state was growing faster than any other in the nation, with an annual rate of 9.9% in the fourth quarter of 2020.

“South Dakota is open for business. Because of the unique approach that we took to the virus, we’ve set our economy up for tremendous growth, both in the short-term and long into the future. Our real estate market is booming as families and businesses look to move to a state that preserves our way of life and respects freedom and personal responsibility.”
Kristi Noem
Governor

TAXES

No corporate income tax

# 0

on the Tax Foundation’s State Business Tax Climate Index ranking

EDUCATION

0 %

of students graduated high school in 2019

0 %

of adults age 25 and older have a bachelor’s degree or higher

UNEMPLOYMENT RATE

0 %

RIGHT TO WORK STATE

Yes

QUALITY OF LIFE

# 0

POPULATION GROWTH

0 %

increase between 2010 and 2020

KEY INCENTIVES

The Reinvestment Payment Program: Provides rein- vestment payments to projects in excess of $20 million or with equipment upgrades in excess of $2 million.

South Dakota Jobs Program: Assists companies in offsetting the upfront costs associated with relocating or expanding operations and/or upgrading equipment in South Dakota.

South Dakota’s REDI (Revolving Economic Development and Initiative) Fund: Offers low-interest loans of up to 45% of a project’s total cost with a 10% minimum equity contribution.

Dakota Seeds: An internship program that can help establish a pipeline for future permanent employment. Qualifying businesses receive matching funds up to $2,000 per intern for internships in the Science, Technology, Engineering and Math (STEM) fields, as well as in manufacturing and accounting.

EDCs

Governor’s Office of Economic Development

sdgoed.com

Sioux Falls Development Foundation

siouxfallsdevelopment.com

Elevate Rapid City

elevaterapidcity.com

Rushmore Region

rushmoreregion.com

HIGHLIGHTED PROGRAM OR INITIATIVE

The GOED’s Workforce Development Program allows companies to access money to help train new and existing employees that require additional skills as the result of company growth. It funds up to 50% of eligible training expenses to businesses that meet certain wage and benefit criteria. The funds are awarded on a reimbursement basis, typically $500 per trainee.

BIG DEALS

  • Silencer Central announced in October 2020 it will build a new corporate headquarters in Tea.
  • Furniture Mart USA announced in June 2021 the doubling of its distribution center and headquarters in northern Sioux Falls and adding 55 employees.
  • Cole-TAC cut the ribbon in July 2021 on a facility that will create 40 jobs in Rapid City.
  • AEsir Technologies announced in September 2021 a
  • $250 million investment and 400 new jobs in Rapid City.

BIG COMPANIES

  • 3M
  • Citibank 
  • Esurance
  • Wells Fargo Bank 
  • Smithfield Foods 
  • PREMIER
No 15: South Dakota

No. 15

South Dakota

Taxation and Regulations
Workforce Quality
Living Environment

Based on CEO Survey by ChiefExecutive.net

Key Metrics
Taxation and Regulations

  • State Corporate Income Tax Rate: None
  • Highest Personal Income Tax Rate: None

Workforce Quality

  • % with High School diploma or more: 90.3
  • % with Bachelor’s degree or more: 25.1
  • % with Advanced degree or more: 7.3
  • Patents per 100K: 8.62
  • % of Employed Represented by Unions: 6.6

Quality of Life

  • Hopsitals per 10K: 0.644
  • Elementary/Secondary Schools per 1000 people: 0.955
  • Violent Crimes per 100K: 165.02
Key Companies
  • Blask Hills Corp.
  • NorthWest Corp.
  • LodgeNet Interactive
Other Highlights
  • South Dakota fell to #15 from #14 in 2010 — the state took #13 in 2009
  • South Dakota ranks #12 in state debt per capita with $4485

Sources:
TaxFoundation.org
Statemaster.com
Bureau of Labor Statistics
U.S. Census Bureau
U.S. Patent and Trademark Office
The National Center for Public Policy and Higher Education