Purpose of the Bill

The bill aims to provide tax relief for the construction and development of specific research and development campuses in Minnesota. It seeks to incentivize investment and growth in these areas by offering a financial benefit through tax exemptions.

Main Provisions

• Tax Exemption for Materials and Equipment: The bill offers a refundable sales and use tax exemption on materials, supplies, and equipment used in constructing or improving research and development campuses. This includes utility in customer experience centers and related on-site facilities.

• Eligibility Requirements: To qualify for the exemption, a campus must have at least 250,000 square feet of laboratory space and incur a total construction cost of at least $200 million over a 32-month period.

• Refund Process: Although the applicable sales tax must initially be imposed and collected, it will be refunded in a manner similar to other qualifying projects under existing Minnesota statutes.

Significant Changes to Existing Law

• The bill adds a new subdivision to Minnesota Statutes 2024, section 297A.71, thereby expanding the scope of tax exemptions to specifically cover the construction and improvements of large-scale research and development campuses.

• The amendment allows for a streamlined refund of sales tax for eligible projects, which was not previously catered to under the existing statutes.

Relevant Terms

• Tax exemption
• Refundable exemption
• Research and development campuses
• Construction materials
• Sales and use tax
• Laboratory space
• Minnesota Statutes