Bill > SF3265

This bill proposes to repeal the sales and use tax exemption for data centers in Minnesota, effectively ending tax breaks that were previously available for large technology infrastructure investments. Specifically, the bill removes existing provisions that allowed data centers to receive exemptions on enterprise information technology equipment, computer software, and electricity used in qualifying facilities. Under the previous law, a "qualified data center" was defined as a facility in Minnesota with at least 25,000 square feet, requiring a minimum investment of $30 million within a 48-month period, and meeting specific infrastructure and security requirements. The bill amends Minnesota Statutes to remove references to these data center tax exemptions from several sections, striking out language related to the previous tax benefits. The changes are set to take effect on July 1, 2025, which gives businesses some time to prepare for the elimination of these tax exemptions. By repealing this tax break, the state is likely aiming to increase tax revenue from technology infrastructure investments and potentially adjust economic development incentives for the technology sector.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3265&ssn=0&y=2025