The South Dakota Pro-Entrepreneurship & AI Workforce Act (SD-AI-Workforce)

South Dakota state companion to AI Workforce. Given no state income tax, the training incentive is structured as a reinvestment payment and REDI Fund grant under S.D. Codified Laws Sec. 1-16G-56 et seq.

THE SOUTH DAKOTA PRO-ENTREPRENEURSHIP & AI WORKFORCE ACT (SD-AI-WORKFORCE)

Vehicle: State passage. South Dakota Legislature, regular session. Primary referral to House / Senate Commerce and Energy / Taxation / Appropriations.

SECTION 1. SHORT TITLE

This Act may be cited as the “South Dakota Pro-Entrepreneurship & AI Workforce Act (SD-AI-Workforce).”

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The Legislature finds that South Dakota levies no personal income tax and no general corporate income tax; that S.D. Codified Laws Title 47 governs corporations; that the Governor’s Office of Economic Development administers the REDI Fund and Reinvestment Payment Program under S.D. Codified Laws Sec. 1-16G-56 et seq.; that the Build Dakota Scholarship supports technical-college training; and that the Board of Technical Education administers workforce training. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH SOUTH DAKOTA LAW

Sec. 101. Definitions

(a) “Qualified South Dakota AI Workforce Training” means training toward an SDRMC or Federal FRAC in AI fields.
(b) “South Dakota Innovation Sandbox” means a regulatory sandbox under Title III.
(c) “Qualified small business” has the meaning given in S.D. Codified Laws Title 47.

Sec. 102. Coordination with Existing South Dakota Law

(a) Consistent with:

S.D. Codified Laws Title 47 (corporations).
S.D. Codified Laws Sec. 1-16G-56 et seq. (REDI Fund / Reinvestment Payment).
S.D. Codified Laws Title 13 Ch. 39A (Board of Technical Education).
Build Dakota Scholarship framework.

TITLE II — SOUTH DAKOTA AI WORKFORCE TRAINING INCENTIVE (No-Corporate-Tax Rewire)

Sec. 201. Reinvestment Payment / Grant

(a) Given that South Dakota levies no individual or general corporate income tax, no tax credit is imposed against such taxes. The incentive is structured as:

(i) An expansion of the Reinvestment Payment Program under S.D. Codified Laws Sec. 1-16G-56 et seq. for qualified AI workforce training expenditures, and/or
(ii) A direct workforce grant from the REDI Fund for qualifying AI training, subject to the availability of appropriations.

(b) Eligible expenditure base mirrors federal IRC Sec. 45BB; aggregate cap.
(c) Award equals 30% of eligible expenditures capped at $3,000 per employee / $150,000 per employer annually.
(d) Governor’s Office of Economic Development administers.

Sec. 202. Coordination with Board of Technical Education / Build Dakota

(a) The Board of Technical Education and Build Dakota Scholarship shall publish a list of qualifying SDRMC and Federal FRAC pathways.

TITLE III — SOUTH DAKOTA INNOVATION SANDBOX

Sec. 301. Establishment

(a) The Governor’s Office of Economic Development, in coordination with the Secretary of State, shall operate a South Dakota Innovation Sandbox.
(b) Twenty-four-month terms; renewable.

Sec. 302. Scope

(a) Covers state-licensed activities in occupational-licensure boards under S.D. Codified Laws Title 36 and financial-institution activities under S.D. Codified Laws Title 51A, to the extent not preempted.

TITLE IV — SMALL-BUSINESS FORMATION

Sec. 401. Expedited Formation Pathway

(a) The Secretary of State shall implement an expedited formation pathway for S.D. Codified Laws Title 47 entities within 24 hours.

Sec. 402. Single-Portal Licensing

(a) SD.gov business services shall operate a single-portal licensing system for state-level occupational licenses under S.D. Codified Laws Title 36.

TITLE V — IMPLEMENTATION & GENERAL PROVISIONS

Sec. 501. Severability

If any provision is held invalid, the invalidity shall not affect the remainder.

Sec. 502. Effective Date

This Act shall take effect July 1 of the year following enactment.

Canonical federal version: AI Workforce. Other South Dakota bills: SD-ACSA, SD-MEWRA, SD-GT&P.