South Dakota’s Board of Economic Development has approved more than $6 million in tax offsets to support three major construction projects across the state, with the goal of bolstering job creation and economic growth.

The board's decision, made Wednesday, will be implemented through the Governor’s Office of Economic Development (GOED) via the Reinvestment Payment Program. The program offers reimbursements of up to the full amount of sales and use taxes paid on eligible construction costs. In total, the three projects are expected to represent $419 million in capital investment and create 180 full-time jobs.

“The growth we’re witnessing in South Dakota is a direct result of the dedication and hard work of businesses investing in our future,” said GOED Commissioner Joe Fiala in a news release. “We’re excited to see these projects move forward and contribute to our state’s success.”

Major Project Highlights

Big Stone Energy Storage Project LLC will receive up to $3.39 million in tax offsets for the development of a thermal energy storage facility, a concept that is growing in popularity as industries seek to reduce carbon footprints and improve energy efficiency.

While details on the specific facility weren’t disclosed, thermal energy storage (TES) refers to technology that stores excess energy by heating or cooling substances such as molten salts, water, or phase-change materials for future use. According to the Renewable Thermal Collaborative, these systems—often called "heat batteries"—can help decouple energy supply from demand, allowing industries to optimize when they use renewable or waste heat energy.

Bel Brands USA, a cheese manufacturing company and maker of popular brands such as Babybel, was awarded up to $2.57 million in support of a 100,000-square-foot expansion at its Brookings plant. The expansion is part of the company’s ongoing efforts to modernize and scale up its South Dakota operations, which play a significant role in the region’s dairy economy.

The third recipient, Dakota Line Energy, will receive up to $250,682 to construct a 23-million-gallon covered lagoon digester and install five manure separators at its Humboldt site. The system will allow the company to improve manure management, produce renewable energy in the form of biogas, and reduce environmental impacts associated with livestock operations. The project is also partially supported by a grant from the U.S. Department of Agriculture.

Economic Development Impact

These three projects highlight South Dakota’s strategic emphasis on sustainable infrastructure and value-added agriculture. The mix of renewable energy, food production, and environmental stewardship also aligns with broader national trends in infrastructure investment and rural economic revitalization.

The Reinvestment Payment Program continues to be a key economic tool for South Dakota, aimed at incentivizing large-scale developments that bring lasting employment and growth to communities across the state.

Originally reported by South Dakota Search Light.