Taxes & Incentives

The South Dakota entrepreneur has a competitive edge over his/her business counterparts in 49 of the 50 United States. Per capita state taxes are the 49th lowest in the country here. The South Dakota business person pays:

• No Corporate Income Tax
• No Personal Income Tax
• No Inventory Tax
• No Personal Property Tax
• No Inheritance Tax

Incentives

LOW INTEREST LOANS

Madison Revolving Loan Program
The mission of this program is to provide low interest loans to create quality, primary jobs in Madison.

South Dakota REDI Loan Program
The REDI (Revolving Economic Development Initiative) loan program's mission is to provide low interest loans to create quality, primary jobs in South Dakota. Click here for more info.

SBA 504
The SBA 504 loan program is another attractive financing tool. This program offers subordinated, fixed rate financing to healthy and expanding small businesses. Click here for more info.

APEX
The APEX (Agricultural Processing and Export) Loan Program is designed to assist companies in communities with a population of 25,000 or less or which add value to raw agricultural products through processing. The program is open to for-profit businesses and local economic development corporations. Click here for more info.

MicroLOAN
The MicroLOAN South Dakota Loan Program is a partnership with CitiBank (South Dakota) N.A., South Dakota Development Corporation, and Governor's Office of Economic Development. These loans are made available to small businesses within the borders of South Dakota and South Dakota residents, including main street and retail operations, for working capital, equipment, real estate or other fixed asset project costs. Click here for more info.

First District Development Company Loan Programs
The mission of the FDDC is to assist businesses by providing long term, lower rate financing for their growth and development, while improving the overall economic condition of the area. There are several loan programs available, for more information contact - www.1stdistrict.org/FDDC.

Rural Electric Economic Development, Inc. (REED) Fund
The program provides financing for business and community projects that create and retain jobs and build community infrastructure. Contact Sioux Valley Energy at (605) 256-1600 for more information.

South Dakota Community Capital Fund
The South Dakota Community Capital Fund (SDCCF) offers economic development organizations serving greater South Dakota the opportunity to participate in an innovative new development financing resource. Click here for more info.

BOND FINANCING

Another financing option is the pooled loan program through South Dakota's Economic Development Finance Authority. This loan program, designed for more capital intensive projects, provides small businesses access to larger capital markets for tax-exempt or taxable bond issuances. The program can fund projects individually or pool them to help lower the cost of the bond issuance. One of the biggest advantages of this program is a long-term loan with a fixed interest rate.

VENTURE CAPITAL

The purpose of the Venture Capital Investment Fund is to make low interest funds available to eligible, for-profit venture capital investment companies (the "Company") in order for the Company to make an investment in an eligible business.

VALUE-ADDED SUBFUND

Technology is changing the agricultural industry. What hasn't changed is South Dakota's commitment to keeping agriculture one of it's leading industries.