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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

This bill seeks to provide a property tax exemption to certain electric generation facilities in Minnesota. The exemption aims to relieve these facilities from property taxes and payments in lieu of taxes, provided they meet specific criteria outlined in the bill.

Main Provisions

  • Eligible Facilities: The tax exemption applies to electric generation facilities with an installed capacity of more than 40 megawatts but less than 50 megawatts.
  • Fuel Type: The facilities must be designed to use natural gas as their primary fuel source.
  • Ownership and Operation: They need to be owned and operated by a municipal power agency, as specified under Minnesota statutes.
  • Location Requirements: The facilities must be located within 1000 feet of an existing natural gas pipeline and outside the metropolitan area. Additionally, they must address a resource deficiency as identified in an official integrated resource plan.
  • Local Approval: The local city and county governments must approve the tax exemption for the facility, evidenced by a resolution.
  • Construction Timeline: Construction of the eligible facilities must begin between January 1, 2026, and January 1, 2028.

Significant Changes to Existing Law

The bill adds a new subdivision to Minnesota Statutes section 272.02, providing a specific tax exemption to facilities that meet the outlined criteria. Previously, similar facilities may not have qualified for this exemption under the existing law.

Relevant Terms

  • Property tax exemption
  • Electric generation facility
  • Natural gas
  • Municipal power agency
  • Integrated resource plan
  • Resource deficiency
  • Metropolitan area
  • Local government approval

Bill text versions

Past committee meetings

  • Taxes on: March 27, 2025 09:00

Actions

DateChamberWhereTypeNameCommittee Name
March 17, 2025SenateFloorActionIntroduction and first reading
March 17, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Inclusion of electric generation facilities that qualify for tax exemption based on usage by a municipal power agency."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the definition of a municipal power agency as provided in section 453.52.",
      "modified": [
        ""
      ]
    },
    "citation": "453.52",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [
        "Requirement for facility to satisfy a resource deficiency identified in an integrated resource plan."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill requires compliance with resource plans filed under section 216B.2422 to qualify for tax exemption.",
      "modified": [
        ""
      ]
    },
    "citation": "216B.2422",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Exclusion of facilities within the metropolitan area from tax exemption eligibility."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references the definition of the metropolitan area as outlined in section 473.121, to determine eligibility for tax exemptions.",
      "modified": [
        ""
      ]
    },
    "citation": "473.121",
    "subdivision": "subdivision 2"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors