This bill amends Minnesota Statutes to modify the sales and use tax exemption for certain data centers. Specifically, it introduces the concept of a "qualified large-scale data center," which is defined as a facility that consists of at least 25,000 square feet and has a total construction or refurbishment cost of at least $250 million within a 60-month period. The bill stipulates that for qualified large-scale data centers, the tax exemption applies at the time of purchase, while for qualified data centers and refurbished data centers, the tax must be collected and then refunded. Additionally, the bill outlines requirements for laborers and mechanics to be paid prevailing wages for work on these facilities and mandates that large-scale data centers achieve certification under recognized sustainable design standards within three years of being placed in service.

The bill also makes several deletions and insertions to clarify the definitions and requirements associated with the tax exemptions. For instance, it removes the previous requirement for tax to be refunded after collection for certain purchases and instead allows for immediate exemption for qualified large-scale data centers. Furthermore, it emphasizes the need for certification from the commissioner of employment and economic development to ensure compliance with the new standards. The effective date for these changes is set for sales and purchases made after June 30, 2025.

Statutes affected:
Introduction: 297A.68, 297A.75