Bill Text: MN SF2934 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Sales tax exemption for data centers
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-03-31 - Referred to Taxes [SF2934 Detail]
Download: Minnesota-2013-SF2934-Introduced.html
1.2relating to taxation; sales and use; modifying exemption for data centers;
1.3amending Minnesota Statutes 2013 Supplement, section 297A.68, subdivision
1.442; Laws 2013, chapter 143, article 8, section 27.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 42,
1.7is amended to read:
1.8 Subd. 42. Qualified data centers. (a) Purchases of: (1) enterprise information
1.9technology equipment; and (2) computer software purchased after June 30, 2013, for use
1.10in a qualified data center, or a qualified refurbished data center, are exempt. The tax
1.11on purchases exempt under this paragraph must be imposed and collected as if the rate
1.12under section297A.62, subdivision 1 , applied, and then refunded after June 30, 2013, in
1.13the manner provided in section297A.75 . This exemption includes enterprise information
1.14technology equipment and computer software purchased to replace or upgrade enterprise
1.15information technology equipment and computer software in a qualified data center, or a
1.16qualified refurbished data center.
1.17(b) Electricity used or consumed in the operation of a qualified data center or
1.18qualified refurbished data center is exempt.
1.19(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished
1.20data center," means a facility in Minnesota:
1.21(1) that is comprised of one or more buildings that consist in the aggregate of
1.22at least 25,000 square feet, and that are located on a single parcel or on contiguous
1.23parcels, where the total cost of construction or refurbishment, investment in enterprise
2.1information technology equipment, and computer software is at least $30,000,000 within
2.2a 48-month period;
2.3(2) that is constructed or substantially refurbished after June 30, 2012, where
2.4"substantially refurbished" means that at least 25,000 square feet have been rebuilt or
2.5modified, including:
2.6(i) installation of enterprise information technology equipment,; environmental
2.7control,; computer software, purchased after June 30, 2013; and energy efficiency
2.8improvements; and
2.9(ii) building improvements; and
2.10(3) that is used to house enterprise information technology equipment, where the
2.11facility has the following characteristics:
2.12(i) uninterruptible power supplies, generator backup power, or both;
2.13(ii) sophisticated fire suppression and prevention systems; and
2.14(iii) enhanced security. A facility will be considered to have enhanced security if it
2.15has restricted access to the facility to selected personnel; permanent security guards; video
2.16camera surveillance; an electronic system requiring pass codes, keycards, or biometric
2.17scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
2.18In determining whether the facility has the required square footage, the square
2.19footage of the following spaces shall be included if the spaces support the operation
2.20of enterprise information technology equipment: office space, meeting space, and
2.21mechanical and other support facilities. For purposes of this subdivision, "computer
2.22software" includes, but is not limited to, software utilized or loaded at the qualified data
2.23center, including maintenance, licensing, and software customization.
2.24(d) For purposes of this subdivision, a "qualified refurbished data center" means an
2.25existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3),but
2.26that is comprised of one or more buildings that consist in the aggregate of at least 25,000
2.27square feet, and that are located on a single parcel or contiguous parcels, where the with a
2.28 total cost of construction or refurbishment, investment in enterprise information technology
2.29equipment, and computer softwareis of at least $50,000,000 within a 24-month period.
2.30(e) For purposes of this subdivision, "enterprise information technology equipment"
2.31means computers and equipment supporting computing, networking, or data storage,
2.32including servers and routers. It includes, but is not limited to: cooling systems,
2.33cooling towers, and other temperature control infrastructure; power infrastructure for
2.34transformation, distribution, or management of electricity used for the maintenance
2.35and operation of a qualified data center, including but not limited to exterior dedicated
2.36business-owned substations, backup power generation systems, battery systems, and
3.1related infrastructure; and racking systems, cabling, and trays, which are necessary for
3.2the maintenance and operation of the qualified data center.
3.3(f) A qualified data center or qualified refurbished data center may claim the
3.4exemptions in this subdivision for purchases made either within 20 years of the date of
3.5its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042,
3.6whichever is earlier.
3.7(g) The purpose of this exemption is to create jobs in the construction and data
3.8center industries.
3.9(h) This subdivision is effective for sales and purchases madeafter June 30, 2012,
3.10and before July 1, 2042.
3.11EFFECTIVE DATE.This section is effective retroactively for sales and purchases
3.12made after June 30, 2012, except that for purchases of computer software, this section is
3.13effective for sales and purchases made after June 30, 2013.
3.14 Sec. 2. Laws 2013, chapter 143, article 8, section 27, the effective date, is amended to
3.15read:
3.16EFFECTIVE DATE.This section is effective retroactively for sales and purchases
3.17made after June 30,2013 2012, except that for purchases of computer software, this
3.18section is effective for sales and purchases made after June 30, 2013.
3.19EFFECTIVE DATE.This section is effective the day following final enactment.
1.3amending Minnesota Statutes 2013 Supplement, section 297A.68, subdivision
1.442; Laws 2013, chapter 143, article 8, section 27.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 42,
1.7is amended to read:
1.8 Subd. 42. Qualified data centers. (a) Purchases of: (1) enterprise information
1.9technology equipment; and (2) computer software purchased after June 30, 2013, for use
1.10in a qualified data center, or a qualified refurbished data center, are exempt. The tax
1.11on purchases exempt under this paragraph must be imposed and collected as if the rate
1.12under section
1.13the manner provided in section
1.14technology equipment and computer software purchased to replace or upgrade enterprise
1.15information technology equipment and computer software in a qualified data center, or a
1.16qualified refurbished data center.
1.17(b) Electricity used or consumed in the operation of a qualified data center or
1.18qualified refurbished data center is exempt.
1.19(c) For purposes of this subdivision, "qualified data center
1.20
1.21(1) that is comprised of one or more buildings that consist in the aggregate of
1.22at least 25,000 square feet, and that are located on a single parcel or on contiguous
1.23parcels, where the total cost of construction or refurbishment, investment in enterprise
2.1information technology equipment, and computer software is at least $30,000,000 within
2.2a 48-month period;
2.3(2) that is constructed or substantially refurbished after June 30, 2012, where
2.4"substantially refurbished" means that at least 25,000 square feet have been rebuilt or
2.5modified, including:
2.6(i) installation of enterprise information technology equipment
2.7control
2.8improvements; and
2.9(ii) building improvements; and
2.10(3) that is used to house enterprise information technology equipment, where the
2.11facility has the following characteristics:
2.12(i) uninterruptible power supplies, generator backup power, or both;
2.13(ii) sophisticated fire suppression and prevention systems; and
2.14(iii) enhanced security. A facility will be considered to have enhanced security if it
2.15has restricted access to the facility to selected personnel; permanent security guards; video
2.16camera surveillance; an electronic system requiring pass codes, keycards, or biometric
2.17scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
2.18In determining whether the facility has the required square footage, the square
2.19footage of the following spaces shall be included if the spaces support the operation
2.20of enterprise information technology equipment: office space, meeting space, and
2.21mechanical and other support facilities. For purposes of this subdivision, "computer
2.22software" includes, but is not limited to, software utilized or loaded at the qualified data
2.23center, including maintenance, licensing, and software customization.
2.24(d) For purposes of this subdivision, a "qualified refurbished data center" means an
2.25existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3),
2.26
2.27
2.28 total cost of construction or refurbishment, investment in enterprise information technology
2.29equipment, and computer software
2.30(e) For purposes of this subdivision, "enterprise information technology equipment"
2.31means computers and equipment supporting computing, networking, or data storage,
2.32including servers and routers. It includes, but is not limited to: cooling systems,
2.33cooling towers, and other temperature control infrastructure; power infrastructure for
2.34transformation, distribution, or management of electricity used for the maintenance
2.35and operation of a qualified data center, including but not limited to exterior dedicated
2.36business-owned substations, backup power generation systems, battery systems, and
3.1related infrastructure; and racking systems, cabling, and trays, which are necessary for
3.2the maintenance and operation of the qualified data center.
3.3(f) A qualified data center or qualified refurbished data center may claim the
3.4exemptions in this subdivision for purchases made either within 20 years of the date of
3.5its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042,
3.6whichever is earlier.
3.7(g) The purpose of this exemption is to create jobs in the construction and data
3.8center industries.
3.9(h) This subdivision is effective for sales and purchases made
3.10
3.11EFFECTIVE DATE.This section is effective retroactively for sales and purchases
3.12made after June 30, 2012, except that for purchases of computer software, this section is
3.13effective for sales and purchases made after June 30, 2013.
3.14 Sec. 2. Laws 2013, chapter 143, article 8, section 27, the effective date, is amended to
3.15read:
3.16EFFECTIVE DATE.This section is effective retroactively for sales and purchases
3.17made after June 30,
3.18section is effective for sales and purchases made after June 30, 2013.
3.19EFFECTIVE DATE.This section is effective the day following final enactment.
