SB 239 — 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.

26.1000.1926.1000.20 101st Legislative Session 239 South Dakota Legislature Senate Bill 239 IntroducedSENATE by:STATE AFFAIRS ENGROSSED This bill has been extensively amended (hoghoused) and may no longer be consistent with the original intention of the sponsor.

Introduced by:

That § 1-16G-611-16G-56 be AMENDED:

1-16G-61.1-16G-56.

AnyTerms personused that has timely filed the application described in §§§ 1-16G-1-16G-56 58 and is holding a permit issued by GOED pursuant to §1-16G-68, 1-16G-60,inclusive, andmean: has completed the project, shall file an affidavit for reinvestment payment with GOED.

The(1) affidavit"Board," forthe reinvestmentBoard paymentof shallEconomic mustDevelopment; contain the following information:

(1)(2) The"Commissioner," projectthe owner'scommissioner nameof andthe contactGovernor's information;Office of Economic Development;

(2)(3) The"Completed generalthe descriptionproject" or "completion of the project;project," the first date when the project is operational;

(3)(4) The"Construction date," the first date ofearth completionis excavated or a contractor has initiated work for the purpose of constructing a new or expanded facility or the project;first date new equipment is located on the project site or existing equipment is removed from the project site for the purpose of equipment upgrades, whichever occurs first;

(4)(5) The"Cryptocurrency," finala projectdigital costs;or virtual currency that is not issued by any central authority, is designed to function as a medium of exchange, and uses encryption technology to regulate the generation of units of currency, to verify fund transfers, and to prevent counterfeiting;

(5)(6) The"Data amountcenter," ofany Southfacility Dakotaestablished salesfor tax,the usepurpose tax,of andprocessing, contractorsstorage, exciseretrieval, taxor paidcommunication for the construction of thedata; project;

(6)(6)(7) The"Department," locationthe Department of theRevenue; project;

(7)(8) The"Direct legalpayment descriptionpermit," ofthe permit issued by the projectdepartment location;pursuant to § 10- 46-67;

(8)Overstrikes Aindicate listdeleted oflanguage. the contractors and subcontractors that performed work on the project;

(9)26.1000.20 If2 239 (7)(9) "Equipment upgrades," the reinvestmentinstallation paymentof wasnew assignedequipment or transferred, the namereplacement andor addressimprovement of theexisting personequipment, towhich whomis subject to the reinvestmentsales paymentor hasuse beentax assignedimposed by chapters 10-45 or transferred;10-46 or contractor's excise tax imposed by chapters 10-46A or 10-46B.

andEquipment (10)upgrades Anydo othernot informationinclude thatthe GOEDinstallation mayor require.replacement of consumable, wear, or maintenance items, or the replacement of failed equipment or components done on an ad hoc basis;

The(8)(10) affidavit"GOED," forthe reinvestmentGovernor's paymentOffice shallof mustEconomic beDevelopment; on a form prescribed by the commissioner.

The(9)(11) affidavit"New foror reinvestmentexpanded paymentfacility," shalla mustnew bebuilding signedor bystructure, or the projectexpansion, Overstrikesrenovation, indicateor deletedretrofitting language.of an existing building or structure, which is subject to the contractor's excise tax imposed by chapters 10-46A or 10-46B;

26.1000.19(10)(12) 2"Person," 239any ownerindividual, andfirm, signedcopartnership, underjoint oathventure, beforeassociation, acooperative, notarynonprofit public.development corporation, limited liability company, limited liability partnership, corporation, estate, trust, business trust, receiver, or any group or combination acting as a unit;

No(11)(13) affidavit"Project," fora reinvestmentnew paymentor mayexpanded includefacility morewith thana oneproject project.cost which exceed twenty million dollars, or equipment upgrades with a project cost which exceed two million dollars.

UponA approvalproject byincludes GOEDlaboratory ofand antesting affidavitfacilities, submittedmanufacturing underfacilities, thisadvanced sectiontelecommunications bycapability, a data center,centers, thepower grossgeneration receiptsfacilities, frompower anytransmission purchasefacilities, madeagricultural forprocessing thefacilities, datawind centerenergy arefacilities, exempt from the provisions of chapters 10-45 and 10-46,facilities anddefined fromby theGOED taxas imposedtargeted byindustries. those chapters.

A project does not include any building or structure:

(a) Used predominantly for the sale of products at retail, other than the sale of electricity at retail, or the provision of advanced telecommunications capability, to individual consumers;

(b) Used predominantly for residential housing or transient lodging;

(c) Used predominantly to provide health care services;

(d) Used predominantly for the transportation or transmission of natural gas, oil, or crude oil by means of a pipeline;

or (e) That is not subject to ad valorem real property taxation or equivalent taxes measured by gross receipts;

(12)(14) "Project cost," the amount paid by the project owner in money, credits, property, or other consideration associated with a project including, without limitation, land, labor, materials, furniture, equipment, fees, or fixtures.

Project cost does not include any amount paid as part of a new or expanded facility or Overstrikes indicate deleted language.

26.1000.20 3 239 equipment upgrades attributable to the processing, storage, retrieval, or communication of data related to cryptocurrency;

(15) "Reinvestment payment permit," the permit issued pursuant to § 1-16G-60;

(16) "Secretary," the secretary of the Department of Revenue;

(13)(17) "Wind energy facility," any new facility or facility expansion that:

(a) Consists of a commonly managed integrated system of towers, wind turbine generators with blades, power collection systems, and electric interconnection systems, that convert wind movement into electricity, and is subject to the tax imposed by §§ 10-35-18 and 10-35-19;

and (b) The construction of which is subject to contractors' excise tax pursuant to chapter 10-46A or 10-46B;

and (14)(18) "Advanced telecommunications capability," without regard to any transmission media or technology, is high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology that provides a minimum actual download speed of at least twenty-five megabits per second and actual upload speed of at least three megabits per second.

That §a 1-16G-62NEW SECTION be AMENDED:added to chapter 1-16G:

1-16G-62.If the project cost for a new or expanded facility on or after April 1, 2026, exceeds the amount set pursuant to section 3 of this Act, a person may apply for a reinvestment payment as provided in § 1-16G-57, subject to the following adjustments to the procedures in §§ 1-16G-56 to 1-16G-68, inclusive:

(1) The affidavitapplication for reinvestment payment as required byin § 1-16G-611-16G-58 shall must bealso filedinclude noall laterinformation thanrequired sixby months after the completiondepartment offor thea projectdirect onpayment orpermit. before June thirtieth of each year.

IfThe thecommissioner affidavitshall forshare reinvestmentthe paymentrelevant isportion notof timely filed, the personapplication iswith ineligiblethe fordepartment anyon futurea reinvestmentconfidential paymentbasis. provided by §§ 1-16G-56 to 1-16G-68, inclusive.