The bill amends Minnesota Statutes to modify the sales and use tax exemption for certain data centers, specifically introducing provisions for "qualified large-scale data centers." It removes the term "qualified" from the existing exemption language and adds new definitions and requirements for both qualified and large-scale data centers. Notably, the bill stipulates that for qualified large-scale data centers, the exemption applies at the time of purchase, contingent upon meeting specific criteria. Additionally, it establishes that laborers and mechanics involved in the construction or refurbishment of these data centers must be paid prevailing wage rates, and it outlines sustainability certification requirements for large-scale data centers.

Furthermore, the bill updates the tax collection process for exempt items, ensuring that the tax is imposed as if the sale were taxable, with the exemption applied later. 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 guidelines and incentives for investment in this sector.

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