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 The revenue generated from these repealed tax provisions will be redirected to increase the renter's credit.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 introduces a new subdivision to section 290.0693, requiring the commissioner of revenue to estimate the increase in general fund revenues resulting from the repeal, which will inform adjustments to the renter's credit amounts for future property taxes.

Moreover, the bill establishes definitions and criteria for "qualified data centers" and "qualified refurbished data centers," detailing specific requirements for size, investment, and construction timelines. A qualified data center must be at least 25,000 square feet with a minimum investment of $30 million within 48 months, while a qualified refurbished data center requires a higher investment of $50 million within 24 months. The bill also introduces a new subdivision for sustainable aviation fuel facilities, exempting materials and supplies used in their construction from sales tax, with a provision for tax refunds and a sunset date of July 1, 2034, for these exemptions.

Statutes affected:
Introduction: 290.0693, 297A.75