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HF2488 (Legislative Session 94 (2025-2026))

Research and development campuses refundable materials and supplies tax exemption provided.

Related bill: SF2854

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to amend Minnesota's tax code to offer a tax incentive for large-scale construction projects associated with research and development (R&D) campuses. Specifically, it aims to provide a financial benefit to encourage the development of significant research facilities in the state.

Main Provisions

  • Tax Exemption for Construction Materials: The bill provides a refundable exemption for sales and use taxes on construction materials, supplies, and equipment used in the building of qualifying R&D campuses and associated facilities.

  • Project Qualification Criteria:

    • The R&D campus must include laboratory space totaling at least 250,000 square feet.
    • The total construction costs for the project must be at least $200 million.
    • The entire construction project must be completed within a 32-month period.

  • Refund Process: Although the tax must initially be imposed and collected, it will be refunded in accordance with existing state law procedures set out for similar projects.

  • Expiration Date: The provisions of this tax exemption will expire on March 1, 2028.

Significant Changes to Existing Law

This bill introduces a new subdivision to Minnesota Statutes section 297A.71, effectively creating a new tax refund incentive specifically targeting large R&D campuses and associated facilities, which had not existed previously. It modifies how sales and use taxes are applied to and refunded for certain construction materials used in qualifying projects.

Relevant Terms

research and development campuses, tax exemption, sales and use tax, construction materials, refundable, laboratory space, tax incentive, refund, Minnesota Statutes, large-scale construction projects

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "The refund process for the newly created exemptions for research and development campuses."
      ],
      "removed": [],
      "summary": "This bill provides a refundable exemption for construction materials used in research and development campuses, referencing the refund mechanism outlined in sections 297A.75 subdivisions 1 and 2.",
      "modified": [
        "References to refund procedure adaptation for specific campus projects."
      ]
    },
    "citation": "297A.75, subdivisions 1, 2"
  }
]

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