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SF2854 (Legislative Session 94 (2025-2026))

Refundable exemption provision for construction material for certain research and development campuses

Related bill: HF2488

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to provide tax incentives for the construction of large research and development (R&D) campuses in Minnesota. It aims to encourage investment in such facilities by offering a financial benefit in the form of a sales and use tax exemption.

Main Provisions

  • Refundable Tax Exemption: The bill introduces a refundable exemption from sales and use taxes for materials, supplies, and equipment used in constructing or improving R&D campuses.
  • Eligibility Criteria: To qualify for this exemption, the R&D campus must include a laboratory space of at least 250,000 square feet and have a construction cost of at least $200 million within a period of 32 months.
  • Project Types Included: This exemption also applies to customer experience centers and related facilities located on the site of the R&D campus.

Significant Changes to Existing Law

  • Additional Subdivision: The bill amends Minnesota Statute 297A.71 by adding a new subdivision specifically for R&D campuses.
  • Refund System: Although the tax will initially be imposed and collected, it will be refunded following the existing procedures outlined in Minnesota Statute 297A.75, which is consistently used for similar large-scale projects.
  • Expiration Date: The provision for this tax exemption is temporary and is set to expire on March 1, 2028.

Relevant Terms

  • Sales and use tax exemption
  • Research and development campuses
  • Laboratory space requirements
  • Construction cost eligibility
  • Refundable tax mechanism

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references section 297A.62 to illustrate the standard tax rate applicable for calculating refundable exemptions.",
      "modified": []
    },
    "citation": "297A.62"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 297A.75 is referenced concerning the procedure for tax refunds on construction materials.",
      "modified": [
        "The refund process described under section 297A.75 applies to construction projects meeting specific criteria."
      ]
    },
    "citation": "297A.75"
  }
]

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