Reinvestment Payment Program

Reinvestment Payment Program The Reinvestment Payment Program 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 economic development efforts, and large and small project needs. The Board of Economic Development oversees the Reinvestment Payment Program. South Dakota Jobs 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. How it Works Eligible Recipients Application Details How it Works The project owner must apply to the Board of Economic Development for the consideration 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 must file 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: Timely file an application with GOED. After GOED has received the completed application, the applicant must make a written request to GOED for the board to take action to approve or deny its application for reinvestment payment. Within 90 days of board approval of the application, the applicant shall accept the approval in writing. Within 30 days after written acceptance is received, GOED shall issue a permit entitling the applicant to submit an affidavit for reinvestment payment. Construction on the project begins.  The applicant is required to notify GOED within 30 days from the date of construction. Applicant files quarterly progress reports as required by GOED. Applicant submits the affidavit for reinvestment payment with GOED, along with any required conditions of the approval, within six months of completion, which is the first date when the project is operational. The payment will be remitted within 90 days of receipt of the affidavit and required information. Eligible Recipients 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: Buildings or structures used predominantly for the sale of products at retail, other than the sale of electricity at retail, to individual consumers; Buildings or structures used predominantly for residential housing or transient lodging; Buildings or structures used predominantly to provide health care services; Buildings or structures used predominantly for the transportation or transmission of natural crude oil by means of a pipeline; or