The bill amends Minnesota Statutes 2023 Supplement, section 297A.70, subdivision 7, to provide a sales tax exemption for certain nonprofit outpatient rehabilitation clinics. Specifically, it introduces new legal language that defines a "nonprofit physical rehabilitation clinic" and outlines the criteria for eligibility for the exemption. These criteria include being organized for charitable purposes under section 501(c)(3) of the Internal Revenue Code, providing specific therapy services, having a significant percentage of uninsured or low-income patients, and offering a sliding scale for payment. The exemption applies to sales of items used in providing outpatient rehabilitation services.

Additionally, the bill modifies existing language by replacing references to paragraph (f) with (g) in various sections, which clarifies the exemptions applicable to hospitals, outpatient surgical centers, critical access dental providers, and blood centers. The effective date for these changes is set for sales and purchases made after June 30, 2024. Overall, the bill aims to support nonprofit outpatient rehabilitation clinics by alleviating their tax burden, thereby enhancing their ability to serve patients in need.