Article

South Dakota House Bill 1005 proposes a sales and use tax exemption for goods and services related to data center operations, requiring data centers to prevent cost shifting to other utility customers and notify local water providers of their consumption. Sponsored by Republican Rep.

Kent Roe, the bill aims to enhance the state's competitiveness by aligning it with neighboring states that offer similar tax incentives. The legislative session begins on January 13, 2026, following a failed attempt with Senate Bill 177 in 2025.