Bill > SF769

This bill modifies Minnesota's tax exemption rules for data centers by creating a new category called "qualified large-scale data centers" with specific requirements and tax benefits. Under the new provisions, a qualified large-scale data center must have at least 25,000 square feet of connected buildings and invest at least $250 million in construction, equipment, and software within a 60-month period starting after June 30, 2025. Unlike previous data center exemptions that required tax collection and subsequent refunds, this new category allows for an immediate exemption at the point of purchase, subject to several conditions. These conditions include paying prevailing wages to construction workers, obtaining sustainable design or green building certification within three years of being placed in service, and potential repayment of the tax exemption if requirements are not met. The bill also requires certification from the commissioner of employment and economic development before the exemption can be claimed and mandates annual reporting. The tax exemption covers enterprise information technology equipment, computer software, and electricity used in operating the data center, with the exemption period extending until June 30, 2042, or 20 years from the first qualifying purchase, whichever comes first.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0769&ssn=0&y=2025