Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF769

Introduced
1/30/25  

Caption

Certain data centers tax exemption modification

Impact

The bill seeks to develop Minnesota's economy by attracting data centers and associated businesses which are expected to generate jobs and stimulate investment in construction and related sectors. It aims to enhance economic growth by providing these centers with more favorable tax treatment, thereby encouraging technology firms to establish operations in Minnesota. This could also lead to improved technology services and infrastructure for residents and businesses statewide.

Summary

SF769 proposes modifications to the sales and use tax exemptions specifically aimed at qualified data centers in Minnesota. The bill amends existing statutes to expand the tax exemptions applicable to purchases made by qualified data centers, refurbishing provisions, and operational expenses such as electricity. It defines a 'qualified data center' as a facility meeting certain size, investment, and operational criteria, which encourages large-scale investments in technology infrastructure within the state. The adjustments are aimed at making Minnesota a more favorable environment for data center development in an increasingly digital economy.

Contention

Notably, discussions surrounding SF769 highlight concerns regarding the long-term sustainability of such tax exemptions. Some legislators argue that significant tax incentives for data centers may divert attention and resources from other critical sectors needing financial support. Additionally, there are questions about ensuring that these investments translate to community benefits such as employment opportunities, necessary infrastructure improvements, and environmental safeguards, prompting debate over whether the bill adequately addresses these critical issues.

Companion Bills

MN HF1277

Similar To Data centers sales and use tax exemption modified.

Similar Bills

MN HF1277

Data centers sales and use tax exemption modified.

MN HF4929

Data center sales and use tax exemption modified.

MN SF4983

Data centers sales and use tax exemption modification

MN SF3265

Sales and use tax exemption for data centers repeal

MN HF3304

Sustainable aviation fuel income tax credit and exemptions for data centers and construction of sustainable aviation fuel facilities repealed, increased general fund amounts reallocated from repealed tax provisions to increase the renter's credit, and corresponding technical changes made.

MN HF3193

Sales and use tax provisions modified, taxation of transfers of prewritten computer software clarified, and exemption for qualified data centers modified.

MN SF3332

Sales and use tax exemptions elimination, gross receipts tax on various services imposition

MA S1958

Relative to qualified data centers in the Commonwealth