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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 bill aims to provide a property tax exemption for certain electric generation facilities in Minnesota. Specifically, it targets facilities that meet certain criteria related to capacity, location, and fuel use.

Main Provisions

  • Tax Exemption: The bill introduces a property tax exemption for personal property that makes up part of an electric generation facility.
  • Facility Requirements: The facility must:
    1. Have an installed capacity between 40 and 50 megawatts.
    2. Use natural gas as the 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 as outlined in an integrated resource plan.
    6. Be located outside the defined metropolitan area.
    7. Have received approval for the tax exemption from the local city and county government.

Significant Changes to Existing Law

  • The bill amends a section of Minnesota Statutes by adding a subdivision that establishes this specific tax exemption.
  • Construction of the qualifying facility must begin between January 1, 2026, and January 1, 2028.
  • The exemption does not apply to electric transmission lines, gas pipelines, or their interconnections associated with the facility.

Relevant Terms

  • Property tax exemption
  • Electric generation facility
  • Natural gas
  • Municipal power agency
  • Integrated resource plan

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subdivision that exempts certain electric generation facilities from property tax."
      ],
      "removed": [],
      "summary": "This bill provides a property tax exemption for certain electric generation facilities by amending section 272.02.",
      "modified": []
    },
    "citation": "272.02",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references the ownership criteria for an electric generation facility by a municipal power agency as defined in section 453.52.",
      "modified": []
    },
    "citation": "453.52",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill requires the electric generation facility to satisfy a resource deficiency identified in an integrated resource plan filed under section 216B.2422.",
      "modified": []
    },
    "citation": "216B.2422",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill requires the facility to be located outside of the metropolitan area as defined in section 473.121.",
      "modified": []
    },
    "citation": "473.121",
    "subdivision": "subdivision 2"
  }
]

Sponsors