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.

Quoath South Dakota, “Quest No More.”

South Dakota’s quest service which could be used to file Sales and use tax returns, and contractors excise returns will not be available after July 23, 2013. Instead’ the South Dakota Department of revenue suggests using the EPATH service to electronically file said returns.