May 1st Deadline to Apply for Discontinued SD Tax Credits

On February 12, 2014, the South Dakota legislature enacted House Bill 1070, which, among other things, set a date of July 1, 2015 to repeal key tax credits for the building of agricultural processing facilities, as well as large new business facilities (S.D. Codified Laws Ann. § 10-45b).

These refunds apply to the contractors excise tax and are allowed for:
• Sales and use tax paid for purchases or use of agricultural processing equipment
• Project costs incurred and paid within 36 months of a permit application for an agricultural processing facility project
• Large new business facility project costs that exceed $10 Million

Provisions included in the repeal set a May 1, 2014 deadline to submit refund claims associated with permits for construction. If a business does not file by the May 1st deadline then they are barred from any future refund eligibility.

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