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The Reinvestment Payment Program provides reinvestment payments to projects in excess of $20,000,000, or with equipment upgrades in excess of $2,000,000. The awards are intended for projects that would not have occurred without the reinvestment payment. The program is a component of 2013’s “Building South Dakota” legislation, which focuses on education, housing, infrastructure, local economic development efforts, and large and small project needs. The Board of Economic Development oversees the Reinvestment Payment Program.
This program is available to assist companies in offsetting the upfront costs associated with relocating or expanding operations and/or upgrading equipment in South Dakota. The program allows for project owners to receive a South Dakota Jobs Grant for new or expanded facilities with project costs less than $20,000,000, or for equipment upgrades with project costs less than $2,000,000. The Board of Economic Development oversees the South Dakota Jobs Program.
The project owner applies to the Board of Economic Development for a reinvestment payment no later than 90 days after starting construction. If the board approves the application, the project owner must comply with the conditions of the approval, to include the payment of all taxes it owes on the project before it receives the payment. At the conclusion of the project the project owner files an Affidavit for Reinvestment Payment with GOED, and if all of the conditions of the reinvestment payment have been met, GOED issues the reinvestment payment to the project owner. The following steps outline the process in more detail:
Companies pursuing new or expanded facilities with a total project costs in excess of $20,000,000 or equipment upgrades with a total project cost in excess of $2,000,000 are eligible to apply to the Board of Economic Development for a reinvestment payment under this program. One of the key criteria considered by the board when approving or denying an application is the likelihood the project would have occurred without the reinvestment payment. Reinvestment payments are intended for projects that would not have occurred without the payment. The following projects are not eligible for a reinvestment payment:
The application must be completed and submitted no later than 90 days after construction or installation of equipment begins.