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SF2615 (Legislative Session 94 (2025-2026))

Electric generation facility property tax exemption provision

Related bill: HF1773

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to provide a tax exemption for certain electric generation facilities in Minnesota. It aims to encourage the development of natural gas-powered electricity generation by offering a specific property tax exemption.

Main Provisions

  • Property Tax Exemption: The bill provides an exemption from property taxes for the personal property of an electric generation facility under certain conditions.

  • Facility Requirements: To qualify, a facility must:

    1. Have a capacity between 40 and 50 megawatts.
    2. Use natural gas as its primary fuel source.
    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.
    6. Be situated outside the metropolitan area of Minnesota.
    7. Receive approval via resolution from the local city and county governments.

  • Construction Timeline: The construction of eligible facilities must start between January 1, 2026, and January 1, 2028.

  • Exclusions: The exemption does not apply to electric transmission lines, interconnections, or gas pipelines associated with the property.

Significant Changes to Existing Law

  • This bill adds a new subdivision to the Minnesota Statutes, specifically section 272.02, detailing the criteria and conditions under which certain electric generation facilities can receive property tax exemptions. This is a novel provision aimed at specific facilities meeting detailed criteria.

Relevant Terms

natural gas, property tax exemption, electric generation facility, municipal power agency, natural gas pipeline, integrated resource plan, metropolitan area, resource deficiency, construction timeline.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025SenateFloorActionIntroduction and first reading
March 16, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Adds a new subdivision for electric generation facility personal property tax exemption."
      ],
      "removed": [],
      "summary": "This bill introduces a property tax exemption for certain electric generation facilities under section 272.02.",
      "modified": []
    },
    "citation": "272.02"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references section 453.52 to define 'municipal power agency'.",
      "modified": []
    },
    "citation": "453.52"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill requires compliance with an integrated resource plan under section 216B.2422.",
      "modified": []
    },
    "citation": "216B.2422"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references section 473.121 to define the metropolitan area.",
      "modified": []
    },
    "citation": "473.121"
  }
]

Sponsors