South Dakota subsidizes businesses mainly through loans and grants, and the two “tax incentives” pay cash reimbursements for taxes paid. Most programs are administered by the Governor’s Office of Economic Development, and applications are reviewed by the Board of Economic Development. The Office is required to publish annual reports for the major programs where recipients or projects are disclosed. The state also maintains an open data transparency portal that have all the contracts and grants. Localities in South Dakota rely on tax increment fincing.
Some large cities in South Dakota report tax abatements in accordance with Statement No. 77 but only 6 out of 136 school districts do. At this time there is no statutory mechanism for evaluating subsidy programs.