South Dakota’s economic development board approves $66K sales tax rebate for Sioux Falls lab

South Dakota’s Board of Economic Development this week approved a sales tax rebate of up to $65,804 for a Sioux Falls lab. 

The assistance for OmegaQuant comes from the state’s New Frontiers program, which supports qualifying research and clinical trials. 

The rebate will help fund additional research to develop blood fatty-acid-based algorithms to predict insulin resistance early, according to the Governor’s Office of Economic Development. The payment reimburses sales and use taxes paid on research and development costs associated with the project, including qualifying research equipment and supplies. 

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“The research has the potential to lead to new commercially viable testing tools developed and offered from South Dakota,” according to the office’s press release. 

The office said the project is also supported by a $1 million grant from the National Institute of Diabetes and Digestive and Kidney Diseases, which is part of the U.S. Department of Health and Human Services.

OmegaQuant employs 12 people in South Dakota. The company anticipates adding 14 new full-time positions over the next five years through this project, according to the release.

“Research and development projects like this demonstrate the potential of South Dakota companies to compete in specialized, high-growth industries,” said Commissioner of Economic Development Bill Even in the press release. “Supporting this work helps create opportunities to bring new technologies to market while growing skilled employment and strengthening South Dakota’s biotechnology sector.”

The board awarded OmegaQuant another rebate of up to $8,845.87 from the New Frontiers program in October. The Governor’s Office of Economic Development said OmegaQuant had been awarded a $320,864 National Eye Institute grant through the U.S. Department of Health and Human Services for that project to “develop blood fatty-acid-based algorithms for the early prediction of macular degeneration and glaucoma, with the potential to create new commercially viable testing tools developed and offered from South Dakota.”

OmegaQuant estimated adding eight jobs over the next five years through that project.