HF4173 (Legislative Session 94 (2025-2026))
Certain defined terms maintained, and data center exemptions modified.
Related bill: SF4203
AI Generated Summary
Purpose
This bill modifies the data center tax policy to define what counts as a “Qualified large-scale data center” for purposes of the data center sales tax exemption, and sets criteria that must be met for a facility (and its tenants) to qualify.
Main Provisions
- Adds a formal definition of a “Qualified large-scale data center.”
- The definition is tied to eligibility for the data center sales tax exemption and references related laws (Minnesota Statutes 216B.02 and 297A.68).
- A qualified facility must be in Minnesota, consist of one or more buildings connected to each other by fiber, and include associated equipment.
- Qualifying facilities must meet the size criterion of at least 25,000 square feet in total, located at one physical location or multiple locations.
- The total cost of construction or refurbishment investment in enterprise information technology equipment and computer software, funded by the facility and its tenants, must reach at least $250,000,000.
- This $250 million investment must be accumulated within a 60-month period beginning after June 1, 2025 (dates and interpretation may be clarified in final drafting).
- The bill references maintaining certain defined terms for other purposes and modifying the data center exemption, indicating changes to how the exemption is administered or applied.
Significant Changes to Existing Law
- Establishes a new qualification standard for the data center sales tax exemption by creating the term “Qualified large-scale data center.”
- Sets a specific monetary threshold ($250,000,000) and a specific investment period (60 months starting after June 1, 2025) as conditions for eligibility.
- Ties the definition to facilities and their tenants, requiring joint investment across the whole data center project.
- Amends multiple statutory provisions (216B.02 and 297A.68) to incorporate this new definition and modify the exemption framework accordingly.
Relevant Terms - Qualified large-scale data center - data center sales tax exemption - Minnesota Statutes 216B.02 - Minnesota Statutes 297A.68 - enterprise information technology equipment - computer software - construction or refurbishment investment - $250,000,000 - 60-month period - June 1, 2025 - buildings connected by fiber - 25,000 square feet - facility and its tenants
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2026 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Adds a new subdivision (Subd. 12) to 216B.02 defining 'Qualified largescale data center'.",
"Specifies that the meaning of the term is tied to section 297A.68, subdivision 42, paragraph e."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 216B.02 to add a new definition related to data centers as part of the data center exemption framework.",
"modified": [
"Modifies the data center exemption framework by introducing the 'Qualified largescale data center' definition."
]
},
"citation": "216B.02",
"subdivision": ""
},
{
"analysis": {
"added": [
"Defines 'Qualified largescale data center' with criteria: at least 25,000 square feet; located in Minnesota in one or more buildings; total construction/refurbishment investment in enterprise IT equipment and computer software of at least $250,000,000 by the facility and its tenants within a 60-month period beginning after June 1, 2025.",
"Cross-references Minnesota Statutes 2025 Supplement, 216B.02 subdivision 12 to centralize the data center exemption treatment."
],
"removed": [],
"summary": "This bill, as reflected in the Minnesota Statutes 2025 Supplement, adds Subdivision 12 to 216B.02 defining a 'Qualified largescale data center' for exemption purposes, with specific size, location, and investment thresholds.",
"modified": [
"Amends the exemption framework to apply to data centers meeting the new definition."
]
},
"citation": "216B.02",
"subdivision": "12"
},
{
"analysis": {
"added": [
"Cross-reference to 297A.68 subdivision 42 paragraph e used to define 'Qualified largescale data center' in 216B.02."
],
"removed": [],
"summary": "The bill relies on the definition of 'Qualified largescale data center' as defined in 297A.68 subdivision 42 paragraph e; it does not modify 297A.68 itself but uses its definition for the 216B.02 data center definition.",
"modified": [
"No direct modification to 297A.68; the change is the use of its definition within 216B.02."
]
},
"citation": "297A.68",
"subdivision": "42 paragraph e"
}
]Progress through the legislative process
In Committee