Bill Text: MN HF1781 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Biopharmaceutical manufacturing facility exemption provided.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2013-04-17 - Authors added Newton and Nelson [HF1781 Detail]
Download: Minnesota-2013-HF1781-Introduced.html
1.2relating to taxation; sales and use; providing an exemption for a
1.3biopharmaceutical manufacturing facility;amending Minnesota Statutes 2012,
1.4sections 297A.71, by adding a subdivision; 297A.75.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297A.71, is amended by adding a
1.7subdivision to read:
1.8 Subd. 45. Biopharmaceutical manufacturing facility. (a) Materials and
1.9supplies used or consumed in, capital equipment incorporated into, and privately
1.10owned infrastructure in support of the construction, improvement, or expansion of a
1.11biopharmaceutical manufacturing facility in the state are exempt if the following criteria
1.12are met:
1.13(1) the facility is used for the manufacturing of biologics;
1.14(2) the total capital investment made at the facility exceeds $50,000,000; and
1.15(3) the facility creates and maintains at least 190 full-time equivalent positions at the
1.16facility. These positions must be new jobs in Minnesota and not the result of relocating
1.17jobs that currently exist in Minnesota.
1.18(b) The tax must be imposed and collected as if the rate under section 297A.62,
1.19subdivision 1, applied, and refunded in the manner provided in section 297A.75.
1.20(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing
1.21facility must:
1.22(1) initially apply to the Department of Employment and Economic Development
1.23for certification no later than one year from the final completion date of construction,
1.24improvement, or expansion of the facility; and
2.1(2) for each year that the owner of the biopharmaceutical manufacturing facility
2.2applies for a refund, the owner must have received written certification from the
2.3Department of Employment and Economic Development that the facility has met the
2.4criteria of paragraph (a).
2.5(d) The refund is to be paid annually at a rate of 25 percent of the total allowable
2.6refund payable to date, with the commissioner making annual payments of the remaining
2.7refund until all of the refund has been paid.
2.8(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are
2.9interchangeable and mean medical drugs or medicinal preparations produced using
2.10technology that uses biological systems, living organisms or derivatives of living
2.11organisms, to make or modify products or processes for specific use. The medical drugs or
2.12medicinal preparations include but are not limited to proteins, antibodies, nucleic acids,
2.13and vaccines.
2.14EFFECTIVE DATE.This section is effective retroactively to investments entered
2.15into and jobs created after December 31, 2012, and effective retroactively for sales and
2.16purchases made after December 31, 2012, and before July 1, 2019.
2.17 Sec. 2. Minnesota Statutes 2012, section 297A.75, is amended to read:
2.18297A.75 REFUND; APPROPRIATION.
2.19 Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
2.20following exempt items must be imposed and collected as if the sale were taxable and the
2.21rate under section297A.62, subdivision 1 , applied. The exempt items include:
2.22 (1) capital equipment exempt under section297A.68, subdivision 5 ;
2.23 (2) building materials for an agricultural processing facility exempt under section
2.24297A.71, subdivision 13
;
2.25 (3) building materials for mineral production facilities exempt under section
2.26297A.71, subdivision 14
;
2.27 (4) building materials for correctional facilities under section297A.71, subdivision 3 ;
2.28 (5) building materials used in a residence for disabled veterans exempt under section
2.29297A.71, subdivision 11
;
2.30 (6) elevators and building materials exempt under section297A.71, subdivision 12 ;
2.31 (7) building materials for the Long Lake Conservation Center exempt under section
2.32297A.71, subdivision 17
;
2.33 (8) materials and supplies for qualified low-income housing under section297A.71,
2.34subdivision 23 ;
3.1 (9) materials, supplies, and equipment for municipal electric utility facilities under
3.2section297A.71, subdivision 35 ;
3.3 (10) equipment and materials used for the generation, transmission, and distribution
3.4of electrical energy and an aerial camera package exempt under section297A.68 ,
3.5subdivision 37;
3.6 (11) commuter rail vehicle and repair parts under section297A.70 , subdivision 3,
3.7paragraph (a), clause (10);
3.8 (12) materials, supplies, and equipment for construction or improvement of projects
3.9and facilities under section297A.71, subdivision 40 ;
3.10(13) materials, supplies, and equipment for construction or improvement of a meat
3.11processing facility exempt under section297A.71, subdivision 41 ;
3.12(14) materials, supplies, and equipment for construction, improvement, or expansion
3.13of an aerospace defense manufacturing facility exempt under section297A.71 , subdivision
3.1442;
3.15(15) enterprise information technology equipment and computer software for use in
3.16a qualified data center exempt under section297A.68, subdivision 42 ; and
3.17(16) materials, supplies, and equipment for qualifying capital projects under section
3.18297A.71, subdivision 44
.; and
3.19(17) materials, supplies, and equipment for construction, improvement, or expansion
3.20of a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
3.2145.
3.22 Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
3.23commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
3.24must be paid to the applicant. Only the following persons may apply for the refund:
3.25 (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
3.26 (2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
3.27subdivision;
3.28 (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
3.29provided in United States Code, title 38, chapter 21;
3.30 (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
3.31property;
3.32 (5) for subdivision 1, clause (8), the owner of the qualified low-income housing
3.33project;
3.34 (6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
3.35a joint venture of municipal electric utilities;
4.1 (7) for subdivision 1, clauses (10), (13), (14),and (15), and (17), the owner of the
4.2qualifying business; and
4.3 (8) for subdivision 1, clauses (11), (12), and (16), the applicant must be the
4.4governmental entity that owns or contracts for the project or facility.
4.5 Subd. 3. Application. (a) The application must include sufficient information
4.6to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
4.7subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
4.8(12), (13), (14), (15),or (16), or (17), the contractor, subcontractor, or builder must
4.9furnish to the refund applicant a statement including the cost of the exempt items and the
4.10taxes paid on the items unless otherwise specifically provided by this subdivision. The
4.11provisions of sections289A.40 and
289A.50 apply to refunds under this section.
4.12 (b) An applicant may not file more than two applications per calendar year for
4.13refunds for taxes paid on capital equipment exempt under section297A.68, subdivision 5 .
4.14 (c) Total refunds for purchases of items in section297A.71, subdivision 40 , must not
4.15exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
4.16of items in sections297A.70, subdivision 3 , paragraph (a), clause (11), and
297A.71 ,
4.17subdivision 40, must not be filed until after June 30, 2009. Applications for refunds for
4.18purchases of items in section 297A.71, subdivision 45, must not be filed until after June
4.1930, 2016, and only one refund may be filed annually thereafter.
4.20 Subd. 4. Interest. Interest must be paid on the refund at the rate in section270C.405
4.21from 90 days after the refund claim is filed with the commissioner for taxes paid under
4.22subdivision 1.
4.23 Subd. 5. Appropriation. The amount required to make the refunds is annually
4.24appropriated to the commissioner.
4.25EFFECTIVE DATE.This section is effective retroactively to investments entered
4.26into and jobs created after December 31, 2012, and effective retroactively for sales and
4.27purchases made after December 31, 2012, and before July 1, 2019.
1.3biopharmaceutical manufacturing facility;amending Minnesota Statutes 2012,
1.4sections 297A.71, by adding a subdivision; 297A.75.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297A.71, is amended by adding a
1.7subdivision to read:
1.8 Subd. 45. Biopharmaceutical manufacturing facility. (a) Materials and
1.9supplies used or consumed in, capital equipment incorporated into, and privately
1.10owned infrastructure in support of the construction, improvement, or expansion of a
1.11biopharmaceutical manufacturing facility in the state are exempt if the following criteria
1.12are met:
1.13(1) the facility is used for the manufacturing of biologics;
1.14(2) the total capital investment made at the facility exceeds $50,000,000; and
1.15(3) the facility creates and maintains at least 190 full-time equivalent positions at the
1.16facility. These positions must be new jobs in Minnesota and not the result of relocating
1.17jobs that currently exist in Minnesota.
1.18(b) The tax must be imposed and collected as if the rate under section 297A.62,
1.19subdivision 1, applied, and refunded in the manner provided in section 297A.75.
1.20(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing
1.21facility must:
1.22(1) initially apply to the Department of Employment and Economic Development
1.23for certification no later than one year from the final completion date of construction,
1.24improvement, or expansion of the facility; and
2.1(2) for each year that the owner of the biopharmaceutical manufacturing facility
2.2applies for a refund, the owner must have received written certification from the
2.3Department of Employment and Economic Development that the facility has met the
2.4criteria of paragraph (a).
2.5(d) The refund is to be paid annually at a rate of 25 percent of the total allowable
2.6refund payable to date, with the commissioner making annual payments of the remaining
2.7refund until all of the refund has been paid.
2.8(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are
2.9interchangeable and mean medical drugs or medicinal preparations produced using
2.10technology that uses biological systems, living organisms or derivatives of living
2.11organisms, to make or modify products or processes for specific use. The medical drugs or
2.12medicinal preparations include but are not limited to proteins, antibodies, nucleic acids,
2.13and vaccines.
2.14EFFECTIVE DATE.This section is effective retroactively to investments entered
2.15into and jobs created after December 31, 2012, and effective retroactively for sales and
2.16purchases made after December 31, 2012, and before July 1, 2019.
2.17 Sec. 2. Minnesota Statutes 2012, section 297A.75, is amended to read:
2.18297A.75 REFUND; APPROPRIATION.
2.19 Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
2.20following exempt items must be imposed and collected as if the sale were taxable and the
2.21rate under section
2.22 (1) capital equipment exempt under section
2.23 (2) building materials for an agricultural processing facility exempt under section
2.25 (3) building materials for mineral production facilities exempt under section
2.27 (4) building materials for correctional facilities under section
2.28 (5) building materials used in a residence for disabled veterans exempt under section
2.30 (6) elevators and building materials exempt under section
2.31 (7) building materials for the Long Lake Conservation Center exempt under section
2.33 (8) materials and supplies for qualified low-income housing under section
2.34subdivision 23
3.1 (9) materials, supplies, and equipment for municipal electric utility facilities under
3.2section
3.3 (10) equipment and materials used for the generation, transmission, and distribution
3.4of electrical energy and an aerial camera package exempt under section
3.5subdivision 37;
3.6 (11) commuter rail vehicle and repair parts under section
3.7paragraph (a), clause (10);
3.8 (12) materials, supplies, and equipment for construction or improvement of projects
3.9and facilities under section
3.10(13) materials, supplies, and equipment for construction or improvement of a meat
3.11processing facility exempt under section
3.12(14) materials, supplies, and equipment for construction, improvement, or expansion
3.13of an aerospace defense manufacturing facility exempt under section
3.1442;
3.15(15) enterprise information technology equipment and computer software for use in
3.16a qualified data center exempt under section
3.17(16) materials, supplies, and equipment for qualifying capital projects under section
3.19(17) materials, supplies, and equipment for construction, improvement, or expansion
3.20of a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
3.2145.
3.22 Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
3.23commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
3.24must be paid to the applicant. Only the following persons may apply for the refund:
3.25 (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
3.26 (2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
3.27subdivision;
3.28 (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
3.29provided in United States Code, title 38, chapter 21;
3.30 (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
3.31property;
3.32 (5) for subdivision 1, clause (8), the owner of the qualified low-income housing
3.33project;
3.34 (6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
3.35a joint venture of municipal electric utilities;
4.1 (7) for subdivision 1, clauses (10), (13), (14),
4.2qualifying business; and
4.3 (8) for subdivision 1, clauses (11), (12), and (16), the applicant must be the
4.4governmental entity that owns or contracts for the project or facility.
4.5 Subd. 3. Application. (a) The application must include sufficient information
4.6to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
4.7subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
4.8(12), (13), (14), (15),
4.9furnish to the refund applicant a statement including the cost of the exempt items and the
4.10taxes paid on the items unless otherwise specifically provided by this subdivision. The
4.11provisions of sections
4.12 (b) An applicant may not file more than two applications per calendar year for
4.13refunds for taxes paid on capital equipment exempt under section
4.14 (c) Total refunds for purchases of items in section
4.15exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
4.16of items in sections
4.17subdivision 40, must not be filed until after June 30, 2009. Applications for refunds for
4.18purchases of items in section 297A.71, subdivision 45, must not be filed until after June
4.1930, 2016, and only one refund may be filed annually thereafter.
4.20 Subd. 4. Interest. Interest must be paid on the refund at the rate in section
4.22subdivision 1.
4.23 Subd. 5. Appropriation. The amount required to make the refunds is annually
4.24appropriated to the commissioner.
4.25EFFECTIVE DATE.This section is effective retroactively to investments entered
4.26into and jobs created after December 31, 2012, and effective retroactively for sales and
4.27purchases made after December 31, 2012, and before July 1, 2019.
