SB 239 South Dakota Senate · 2026 Regular Session

modify provisions relating to the reinvestment payment program, and relating to the purchasing of goods and services used by projects approved for the reinvestment payment program.

SB 239 modifies South Dakota's reinvestment payment program for businesses that complete qualifying projects. It requires project owners to submit detailed affidavits within six months of completion, including costs, tax payments, contractor lists, and project details, to qualify for rebates. The bill creates a dedicated fund to reimburse businesses for South Dakota sales, use, and contractors excise taxes paid on approved projects, while exempting gross receipts from these taxes for qualifying projects. It also sets clear deadlines for filings and specifies that costs beyond three years from construction (with possible one-year extension) are ineligible for rebates. This directly affects businesses completing projects under the program who seek tax rebates on eligible construction expenses.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Feb 4, 2026 Last action Feb 24, 2026

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What changed between versions

Introduced → Senate State Affairs Engrossed · 6 edits · Feb 19, 2026

MODERATE

This bill updates South Dakota's reinvestment payment program by adding new definitions for modern industries like data centers, cryptocurrency facilities, and advanced telecommunications. The changes clarify what types of projects qualify for economic development incentives, particularly focusing on high-tech infrastructure and renewable energy projects.

Scope change

The bill expands the scope of eligible projects to include data centers, cryptocurrency-related equipment upgrades, and advanced telecommunications facilities, while maintaining thresholds for project costs.

DEFINITION

Added definitions for 'Cryptocurrency' as digital currency not issued by a central authority, and 'Data center' as facilities for processing, storing, or communicating data.

Added definition for 'Advanced telecommunications capability' specifying minimum download speeds of 25 megabits per second and upload speeds of 3 megabits per second.

Added definition for 'Wind energy facility' covering integrated systems of wind turbines that convert wind movement into electricity.

Reorganized and renumbered existing definitions to accommodate new terminology, shifting original items to higher numbers.

ELIGIBILITY

Modified the project cost threshold for equipment upgrades from two million dollars to include cryptocurrency-related data processing equipment, while maintaining the twenty million dollar threshold for general projects.

SCOPE

Added specific exclusions for retail sales, residential housing, healthcare facilities, and natural gas/oil pipelines from qualifying as eligible projects.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 24, 2026

Upper · Passed

Senate Reconsidered , Passed, YEAS 16, NAYS 17 S.J. 373

upper

Feb 23, 2026

Upper · Passed

Intent to reconsider , Passed, S.J. 363

upper

Feb 23, 2026

Upper · Passed

Senate Do Pass Amended , Passed, YEAS 17, NAYS 16 S.J. 362

upper

Feb 18, 2026

Upper · Passed

State Affairs Do Pass Amended , Passed, YEAS 6, NAYS 3 S.J. 27

upper

Feb 18, 2026

Introduced

State Affairs Motion to amend , Passed, S.J. 27 Amendment 239B

upper

Feb 5, 2026

Committee

Referred to Senate State Affairs S.J. 199

upper

2 primary · 0 co-sponsors