Voters will be asked to decide on Referred Law 14 at the polls on Tuesday.
The law would take 22 percent of contractors' excise taxes and put the money into a Large Project Development Fund.
Under the control of the South Dakota Board of Economic Development, that fund would finance grants for projects that cost more than $5 million.
Proponents say the law will create jobs and increase local tax bases.
Critics say the program provides little transparency and accountability.
"Yes" on 14 supports the creation of the economic development fund, and a "no" vote prevents the fund.