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Tax Breaks For Large Projects Stir Controversy

July 11, 2010, 1:11 PM

PIERRE, SD - South Dakota has given out about $50 million in tax breaks in the past four years to lure companies into building large projects in the state, but critics question whether the state is getting enough bang for its buck.

House Democratic Leader Bernie Hunhoff of Yankton says the state gives away too much tax revenue to projects that would be built even without the construction tax refunds. He says the state should target breaks to specific industries, such as wind farms and ethanol plants.

Gov. Mike Rounds says he believes the tax breaks help attract large energy projects that will provide good jobs for a long time
to come.

The Republican governor and the Legislature this year limited the tax breaks, partly to help balance the state budget.

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