South Dakota

  • Dakota Seeds is an innovative internship program that connects students with employers as a way to help fill temporary workforce needs and establish a pipeline for future permanent employment. Qualifying businesses can 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.
  • The Proof of Concept program provides up to $25,000 to conduct research that demonstrates the technical and economic feasibility of an innovation before it is commercialized. The program is open to those committed to commercializing an innovation in South Dakota, such as entrepreneurs, universities, existing South Dakota companies and other entities. Investment proceeds may be used to pay consultant contracts, material and supplies, salaries for employees in South Dakota, and necessary services for technical feasibility or marketing studies.
  • South Dakota’s Economic Development Finance Authority (EDFA) offers a pooled loan program. The program, designed for capital-intensive projects, provides small businesses access to larger capital markets for tax-exempt or taxable bond issuances. Projects can be funded individually or pooled to help lower the cost of the bond issuance. One of the biggest advantages of this program is a long-term loan with a fixed interest rate.
  • South Dakota WORKS is a flexible loan program that offers business and commercial loans to companies in need of working capital and interim construction financing. The WORKS program can finance up to $1 million of a project in a subordinated lien position and requires a lead lender to participate. Eligible uses include startup costs, working capital, payroll and construction on new buildings.
  • The Community Development Block Grant (CDBG) program, administered on behalf of the U.S. Department of Housing and Urban Development (HUD), helps develop viable communities by providing funds for a wide range of community needs, including water and wastewater infrastructure, community centers, medical centers, workforce training, senior centers; and for industrial infrastructure that will assist businesses creating new job opportunities for low- and moderate-income (LMI) individuals.
  • A new or expanding plant may exempt machinery or equipment from sales and use taxes if it is: (1) used primarily for manufacturing or agricultural processing, or (2) used solely for recycling. The expansion must increase production volume, employment, or the types of products that can be manufactured or processed.
  • A sales and use tax exemption may be granted for building materials, equipment, and other tangible personal property used to expand or construct an oil refinery in North Dakota. The facility must have a nameplate capacity of processing at least 5,000 barrels of oil per day. In addition, purchases for environmental upgrades that exceed $100,000 and that reduce emissions, increase efficiency, or enhance reliability of equipment may also qualify for an exemption.
  • A sales and use tax exemption may be granted for purchasing building materials, equipment, and other tangible personal property used to construct or expand a qualified straddle plant, a qualified fractionator plant, or qualified associated infrastructure in North Dakota.