Purpose of the Bill

The purpose of this bill is to repeal certain tax credits and exemptions in Minnesota, specifically those related to sustainable aviation fuel and data centers, and to reallocate the resulting increased general fund money to enhance the renters' credit.

Main Provisions

• Repeal of Tax Credits and Exemptions: The bill eliminates the sustainable aviation fuel income tax credit and sales and use tax exemptions for data centers and the construction of sustainable aviation fuel facilities.
• Reallocation of Funds: The increased revenues from the repealed tax provisions are intended to be used to increase the renters' credit for eligible taxpayers.
• Technical Changes: The bill includes amendments to specific sections of Minnesota Statutes (2024) and makes corresponding technical adjustments.

Significant Changes to Existing Law

• The bill changes the financial landscape by redirecting funds previously allocated to tax credits for certain environmental and technological infrastructures towards assisting renters.
• Adjustments to renters' credit will be made to increase the amount available to taxpayers. This is achieved by modifying credit parameters, such as reducing the percentage of income requirements or increasing the maximum credit amount.

Relevant Terms

• Tax credits
• Sustainable aviation fuel
• Data centers
• Renters' credit
• Income tax
• General fund