This bill proposes a property tax exemption for specific electric generation facilities in Minnesota. It amends Minnesota Statutes section 272.02 by adding a new subdivision that exempts certain personal property, including attached machinery, from taxation and payments in lieu of taxation.

To qualify for the exemption, the electric generation facility must: 1. Have an installed capacity between 40 and 50 megawatts. 2. Use natural gas as its primary fuel. 3. Be owned and operated by a municipal power agency. 4. Be located within 1,000 feet of an existing natural gas pipeline. 5. Address a resource deficiency identified in an integrated resource plan filed under Minnesota law. 6. Be situated outside the metropolitan area as defined in section 473.121. 7. Receive approval by resolution from both the city and county in which it is located.

Additionally, construction of the facility must begin between January 1, 2026, and January 1, 2028. The exemption does not apply to electric transmission lines, gas pipelines, or related interconnections.