Bill > HF1277

This bill modifies the sales and use tax exemption for data centers in Minnesota by introducing a new category called "qualified large-scale data centers" alongside existing qualified and refurbished data centers. To qualify as a large-scale data center, a facility must have at least 25,000 square feet of connected buildings and total investments of at least $250 million within a 60-month period after June 30, 2025. The bill creates specific requirements for these large-scale data centers, including mandatory prevailing wage payments for construction workers, certification of sustainable design standards within three years of being placed in service, and potential tax repayment if requirements are not met. For qualified large-scale data centers, the sales tax exemption will apply at the time of purchase, unlike previous data center categories that required tax collection and subsequent refunding. The bill also updates existing statutes to include references to large-scale data centers and sets an effective date of July 1, 2025, for these new provisions. The underlying purpose appears to be encouraging significant data center investments in Minnesota by offering tax incentives while also ensuring labor standards and environmental considerations are addressed.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1277&ssn=0&y=2025