This bill proposes a property tax exemption for certain electric generation facilities in Minnesota by amending Minnesota Statutes 2024, section 272.02. A new subdivision, Subd. 106, is added to outline the criteria for this exemption. Specifically, it applies to electric generation facilities with an installed capacity of more than 40 megawatts and less than 50 megawatts that utilize natural gas as a primary fuel, are owned and operated by a municipal power agency, and meet several other location and approval requirements. The construction of these facilities must commence between January 1, 2026, and January 1, 2028, and the exemption does not cover electric transmission lines or gas pipelines associated with the property.

The bill also specifies that the exemption will take effect for property taxes payable in 2029. This legislative change aims to encourage the development of natural gas-powered electric generation facilities in Minnesota, particularly those that address resource deficiencies and are located outside the metropolitan area.

Statutes affected:
Introduction: 272.02