SD Senate approves limits on tax rebates to large construction projects

SD Senate OKs limits to construction tax rebates

PIERRE, S.D. — A move to limit tax rebates given to large construction projects has passed the South Dakota Senate.

Senators voted 24-10 for the bill on Tuesday, giving it exactly the two-thirds majority needed to pass. The proposal next goes to the House.

Current law gives refunds of sales taxes and contractor’s excise taxes to large industrial projects costing more than $10 million and to agricultural processing projects costing more than $4.5 million. The bill would substantially reduce refunds for large projects and eliminate tax breaks for pipelines and all projects costing more than $500 million.

Supporters say the state should not give tax refunds to projects that would be built in South Dakota no matter what.