Bill > SF2854

This bill creates a new tax exemption and refund mechanism for construction materials used in large research and development campuses in Minnesota. Specifically, the bill provides a sales tax exemption for materials, supplies, and equipment used in constructing or improving a research and development campus that meets certain criteria: the campus must have at least 250,000 square feet of laboratory space, and the total construction project must cost at least $200 million within a 32-month period. While the materials will initially be taxed at the standard state sales tax rate, the tax will then be fully refunded to the project owner or developer. The bill adds this exemption to existing statutes that provide similar tax relief for other types of large construction projects, such as agricultural facilities, correctional facilities, and municipal utilities. The tax exemption and refund will be available for sales and purchases made after June 30, 2025, and will expire on March 1, 2028, making it a time-limited incentive designed to encourage significant research and development infrastructure investments in the state.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2854&ssn=0&y=2025