This bill proposes significant changes to Minnesota's taxation framework, particularly concerning data centers and special education aid appropriations. It repeals the existing tax exemption for data centers, which previously allowed tax-free purchases of enterprise information technology equipment and computer software used in qualified data centers. Additionally, the bill eliminates a contingent reduction in special education aid appropriations that would have mandated a $250 million funding cut for special education starting in the 2027 biennium. New criteria for what constitutes a "qualified large-scale data center" are established, along with definitions for "enterprise information technology equipment," with these changes set to take effect on July 1, 2026.

Furthermore, the bill mandates that the commissioner of education adjust the special education cross subsidy aid factor if net savings from specified provisions are less than $250 million for the biennium beginning July 1, 2027, and for each subsequent biennium. If the savings do not meet the target, the commissioner must reduce biennial appropriations for special education aid accordingly. The bill also requires the commissioner to keep the chairs and ranking minority members of the legislative committees overseeing kindergarten through grade 12 education informed about any adjustments made to the cross subsidy aid factor, promoting transparency regarding changes that may affect special education funding.

Statutes affected:
Introduction: 216B.02