South Dakota and the R&D Tax Credit

South Dakota does not provide a state-specific Research and Development (R&D) tax credit, meaning companies operating within the state are unable to claim a credit against state taxes for eligible R&D activities. However, South Dakota is known for its diverse industries, such as agriculture, manufacturing, healthcare, financial services, and renewable energy, all of which frequently pursue cutting-edge practices and technological progress. Although there is no state-level R&D credit, businesses in these sectors may still qualify for the federal R&D tax credit, which offers a substantial benefit for organizations investing in research and development.

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Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed’s office location 101 South Reid Street, Sioux Falls, South Dakota provides R&D tax credit consulting and advisory services to Sioux Falls, Rapid City, Aberdeen, Brookings and Watertown.

If you have any questions or need further assistance, please call or email our local South Dakota Partner on (605) 776-2882.
Feel free to book a quick teleconference with one of our South Dakota R&D tax credit specialists at a time that is convenient for you. Click here for more information about R&D tax credit management and implementation.


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South Dakota Patent of the Year – 2024/2025

Synergraze Inc. has been awarded the 2024/2025 Patent of the Year for their innovative approach to enhancing algae metabolism. Their invention, detailed in U.S. Patent No. 12116608, titled ‘Extended metabolism methods for increasing and extracting metabolites from algae and microorganisms’, introduces a novel method to boost the production of valuable compounds from algae and microorganisms.

This patented technique focuses on extending the metabolic activity of algal biomass or enzyme extracts, leading to increased yields of secondary metabolites. These compounds have diverse applications in pharmaceuticals, agriculture, and industrial processes. A key aspect of the invention is the production of antimethanogenic compounds, such as bromoform, which can significantly reduce methane emissions from ruminant animals like cattle and sheep.

By culturing algae in solutions with oil layers and inducing stress conditions, the method triggers the release of these beneficial metabolites. This approach not only enhances the efficiency of metabolite extraction but also contributes to environmental sustainability by mitigating greenhouse gas emissions from livestock.

Synergraze Inc.’s patented technology represents a significant advancement in biotechnological methods, offering a sustainable solution to both agricultural and environmental challenges. The company’s commitment to innovation positions them at the forefront of efforts to create a more sustainable future through scientific ingenuity.


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South Dakota Office 

Swanson Reed | Specialist R&D Tax Advisors
101 South Reid Street
Sioux Falls, SD 57103

 

Phone: (605) 776-2882