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Bill Summary · SF 769

Summary of Minnesota SF 769 (Certain data centers tax exemption modification)

Overview

  • Bill number and title: SF 769, “Certain data centers tax exemption modification”
  • Status: Referred to Taxes
  • Introduced: January 30, 2025
  • Companion: HF 1277
  • Subject areas: Commerce/Commerce Department; Data Practices and Privacy; Revenue Department; Taxation – Sales and Use
  • Classification: Bill

Note: The summary below is based on the bill’s title, metadata, and the stated introduction action. The full legislative text is not provided in the prompt. Details about the exact modifications to the data center tax exemption would come from the bill’s text and any accompanying fiscal notes or analyses.

What the bill is intended to address

  • The title indicates the bill aims to modify Minnesota’s tax exemption related to certain data centers. The objective is typically to adjust how the exemption applies to data-center projects, equipment, or services, potentially altering eligibility, scope, duration, or reporting requirements.

Key provisions (anticipated areas to be specified in the bill)

Because the text is not included, the following are the types of changes such a bill commonly would address. The actual provisions may differ:
- Eligibility criteria for the exemption: definition of which data-center activities, equipment, or facilities qualify (e.g., servers, cooling systems, electrical infrastructure, and related hardware).
- Scope of the exemption: types of taxes exempted (sales/use tax, potentially property tax abatements, or other levies) and any caps or limits.
- Duration and sunset provisions: how long the exemption lasts and whether it auto-renews or requires new approval.
- Application and administration: which state agencies administer the exemption (likely the Department of Revenue and possibly involvement of the Commerce Department), application processes, compliance reporting, and renewal requirements.
- Energy, privacy, or data practices considerations: alignment with energy efficiency goals, data security standards, and data privacy requirements, given the bill’s subject areas.
- Compliance and enforcement: remedies for noncompliance, clawbacks, or penalties if requirements aren’t met.
- Local impact provisions: any anticipated effects on local jurisdictions or economic development incentives.

Who would be affected

  • Data-center developers and operators seeking to establish or expand facilities in Minnesota.
  • Equipment suppliers and contractors providing compliant hardware and services.
  • State and local governments via potential changes in tax revenue and economic development incentives.
  • Consumers and taxpayers who could be affected indirectly through state revenue and infrastructure investment.

Procedural and timeline aspects

  • Current stage: Introduction and first reading (January 30, 2025); referred to Taxes.
  • Next steps in process: Committee hearings and potential amendments in the Senate Tax Committee; movement toward floor votes if advancing.
  • Relation to companion bill: HF 1277 in the House serves as a companion measure that may mirror or adjust SF 769’s provisions.

How to follow up

  • For the exact provisions, consult the full text of SF 769 on the Minnesota Legislature’s website or the HF 1277 companion bill.
  • Watch for fiscal notes, committee hearing schedules, and any amendments that clarify the scope and impact.

Compiled from official sources — confirm details with the bill’s official record.

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