Bill > HF2488

This bill provides a new tax exemption for materials, supplies, and equipment used in constructing or improving research and development campuses, customer experience centers, and related facilities in Minnesota. Specifically, the exemption applies to projects that have at least 250,000 square feet of laboratory space and a total construction cost of $200 million or more within a 32-month period. While the materials and supplies will be taxed initially at the standard rate, businesses can apply for a full refund of those taxes through the Minnesota Department of Revenue. The tax exemption and refund process will function similarly to existing tax exemption programs for other types of capital projects, such as agricultural facilities and municipal infrastructure. The bill includes an expiration date of March 1, 2028, and will be effective for sales and purchases made after June 30, 2025. The goal appears to be incentivizing large-scale research and development infrastructure investments in the state by reducing the tax burden on construction materials and equipment.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2488&ssn=0&y=2025