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 specifies 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 working on these data centers to be paid prevailing wage rates 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 updates the existing provisions regarding the tax collection process for exempt items, ensuring that the tax is imposed as if the sale were taxable, with the exemption applied afterward. The effective date for these changes is set for sales and purchases made after June 30, 2025. Overall, the bill aims to enhance the economic development of data centers in Minnesota by providing clearer tax incentives and requirements for construction and refurbishment projects.

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