SF769

Senate File No. 769 is a bill that modifies the tax exemptions for certain types of data centers in Minnesota. The main points covered in the bill are as follows:

1. Tax Exemptions for Data Centers:

   • Purchases of enterprise information technology equipment and computer software used in qualified, refurbished, or large-scale data centers are tax-exempt.
   • This exemption also covers replacements or upgrades of such equipment and software.
   • For large-scale data centers, the exemption applies at the time of purchase, whereas for other data centers, the tax is initially collected and then refunded.

2. Definitions and Criteria:

   • Qualified data centers must be at least 25,000 square feet, located in Minnesota, and involve at least $30 million in costs within 48 months.
   • Refurbished data centers must meet similar size requirements but involve at least $50 million in refurbishment costs within 24 months.
   • Large-scale data centers are defined by a higher threshold of $250 million in expenditure and need to meet specific environmental and security standards.

3. Duration:

   • Data centers can claim tax exemptions for up to 20 years from their first qualifying purchase or until June 30, 2042, whichever comes first.

4. Certification and Compliance:

   • Data centers must be certified by the commissioner of employment and economic development to ensure they meet all required criteria before they can benefit from exemptions.
   • Large-scale data centers must also prove compliance with sustainability or green building standards within three years of operation.

5. Labor Standards:

   • Construction and refurbishment work on qualified data centers must comply with prevailing wage rates and other labor standards.

The purpose of the bill is to attract and retain data center businesses in Minnesota by offering fiscal incentives, thereby boosting local employment in construction and technology sectors.