This bill proposes the repeal of the sustainable aviation fuel income tax credit and the sales and use tax exemptions for data centers and the construction of sustainable aviation fuel facilities. The revenue generated from these repealed tax provisions will be redirected to increase the renter's credit. The bill includes technical amendments to Minnesota Statutes 2024, specifically sections 290.0693 and 297A.75, and repeals several sections related to the sustainable aviation fuel tax credit and data center exemptions. Additionally, it mandates the commissioner of revenue to estimate the increase in general fund revenues resulting from these repeals by December 31, 2025, which will inform future adjustments to the renter's credit.

The bill also introduces definitions and criteria for "qualified data centers" and "qualified refurbished data centers," establishing specific requirements for size and investment. A qualified data center must be at least 25,000 square feet with a minimum investment of $30 million, while a qualified refurbished data center requires a higher investment of $50 million within a shorter timeframe. Furthermore, the bill establishes a new subdivision for sustainable aviation fuel facilities, exempting materials and supplies used in their construction from sales tax, with specific guidelines for calculating exemptions based on production capacity. This subdivision is set to expire on July 1, 2034, but will not affect refunds for prior purchases.

Statutes affected:
Introduction: 290.0693, 297A.75