SD Lawmakers Propose Economic Incentive Plan

South Dakota legislative leaders from both political parties have proposed a wide-ranging measure that would provide financial incentives to help recruit new large industrial projects to the state.

The Republican and Democratic lawmakers say the plan would give tax refunds only to companies that would otherwise not build within South Dakota if not for the incentives. The bill also would use money to support education, housing, workforce training and other programs needed to encourage smaller development projects.

The proposal would refund sales taxes paid during construction of projects costing more than $20 million that otherwise would not be built in South Dakota.

But the contractor's excise tax paid by those projects on construction costs would go into a fund that would help with housing, workforce development and other economic efforts.