The bill amends several sections of South Dakota's tax increment financing law to remove the authorization for grants within tax increment financing districts. Specifically, it deletes the definition of "grant" from the law and eliminates references to grants in the context of project costs and funding. The amendments clarify that project costs will now only include expenditures related to public works or improvements, and incidental costs will be adjusted based on other revenues received by the political subdivision, rather than including grants.

Additionally, the bill specifies that funds from the special district fund can only be used for project costs and reimbursement of those costs, explicitly excluding grants. The termination conditions for a tax increment financing district are also revised to ensure that the district must be dissolved after all project costs and tax increment bonds are settled, without any mention of grants. Overall, the bill aims to streamline the financing process by focusing solely on project costs and eliminating the grant component.

Statutes affected:
Introduced, 01/29/2026: 11-9-1, 11-9-14, 11-9-15, 11-9-32, 11-9-46