Bill Text: MN SF868 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Qualified data centers sales tax exemption expansion
Sponsorship: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2013-03-05 - Author added Reinert [SF868 Detail]
Download: Minnesota-2013-SF868-Introduced.html
1.2relating to taxation; sales and use; providing tax exemption for qualified data
1.3centers;amending Minnesota Statutes 2012, section 297A.68, subdivision 42.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 297A.68, subdivision 42, is amended to
1.6read:
1.7 Subd. 42. Qualified data centers. (a) Purchases of enterprise information
1.8technology equipment and computer software for use in a qualified data center are exempt.
1.9The tax on purchases exempt under this paragraph must be imposed and collected as if the
1.10rate under section297A.62, subdivision 1 , applied, and then refunded after June 30, 2013,
1.11in the manner provided in section297A.75 . This exemption includes enterprise information
1.12technology equipment and computer software purchased to replace or upgrade enterprise
1.13information technology equipment and computer software in a qualified data center.
1.14(b) Electricity used or consumed in the operation of a qualified data center is exempt.
1.15(c) For purposes of this subdivision, "qualified data center" means a facility in
1.16Minnesota:
1.17(1) that is comprised of one or more buildings that consist in the aggregate of at least
1.1830,000 25,000 square feet, and that are located on a single parcel or on contiguous parcels,
1.19where the total cost of construction or refurbishment, investment in enterprise information
1.20technology equipment, and computer software is at least$50,000,000 $20,000,000 within
1.21a24-month 48-month period;
1.22(2) that is constructed or substantially refurbished after June 30, 2012, where
1.23"substantially refurbished" means that at least30,000 25,000 square feet have been rebuilt
1.24or modified; and, including:
2.1(i) installation of enterprise information technology equipment, computer software,
2.2environmental control, and energy efficiency improvements; and
2.3(ii) building improvements; and
2.4(3) that is used to house enterprise information technology equipment, where the
2.5facility has the following characteristics:
2.6(i) uninterruptible power supplies, generator backup power, or both;
2.7(ii) sophisticated fire suppression and prevention systems; and
2.8(iii) enhanced security. A facility will be considered to have enhanced security if it
2.9has restricted access to the facility to selected personnel; permanent security guards; video
2.10camera surveillance; an electronic system requiring pass codes, keycards, or biometric
2.11scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
2.12In determining whether the facility has the required square footage, the square
2.13footage of the following spaces shall be included if the spaces support the operation of
2.14enterprise information technology equipment: office space, meeting space, and mechanical
2.15and other support facilities. For purposes of this subdivision, "computer software"
2.16includes, but is not limited to, expenditures related to and software utilized or loaded at
2.17the qualified data center, including maintenance, licensing, and software customization.
2.18(d) For purposes of this subdivision, "enterprise information technology equipment"
2.19means computers and equipment supporting computing, networking, or data storage,
2.20including servers and routers. It includes, but is not limited to: cooling systems,
2.21cooling towers, and other temperature control infrastructure; power infrastructure for
2.22transformation, distribution, or management of electricity used for the maintenance
2.23and operation of a qualified data center, including but not limited to exterior dedicated
2.24business-owned substations, backup power generation systems, battery systems, and
2.25related infrastructure; and racking systems, cabling, and trays, which are necessary for
2.26the maintenance and operation of the qualified data center.
2.27(e) A qualified data center may claim the exemptions in this subdivision for
2.28purchases made either within 20 years of the date of its first purchase qualifying for the
2.29exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
2.30(f) The purpose of this exemption is to create jobs in the construction and data
2.31center industries.
2.32(g) This subdivision is effective for sales and purchases made after June 30, 2012,
2.33and before July 1, 2042.
2.34EFFECTIVE DATE.This section is effective for sales and purchases made after
2.35June 30, 2013.
1.3centers;amending Minnesota Statutes 2012, section 297A.68, subdivision 42.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 297A.68, subdivision 42, is amended to
1.6read:
1.7 Subd. 42. Qualified data centers. (a) Purchases of enterprise information
1.8technology equipment and computer software for use in a qualified data center are exempt.
1.9The tax on purchases exempt under this paragraph must be imposed and collected as if the
1.10rate under section
1.11in the manner provided in section
1.12technology equipment and computer software purchased to replace or upgrade enterprise
1.13information technology equipment and computer software in a qualified data center.
1.14(b) Electricity used or consumed in the operation of a qualified data center is exempt.
1.15(c) For purposes of this subdivision, "qualified data center" means a facility in
1.16Minnesota:
1.17(1) that is comprised of one or more buildings that consist in the aggregate of at least
1.18
1.19where the total cost of construction or refurbishment, investment in enterprise information
1.20technology equipment, and computer software is at least
1.21a
1.22(2) that is constructed or substantially refurbished after June 30, 2012, where
1.23"substantially refurbished" means that at least
1.24or modified
2.1(i) installation of enterprise information technology equipment, computer software,
2.2environmental control, and energy efficiency improvements; and
2.3(ii) building improvements; and
2.4(3) that is used to house enterprise information technology equipment, where the
2.5facility has the following characteristics:
2.6(i) uninterruptible power supplies, generator backup power, or both;
2.7(ii) sophisticated fire suppression and prevention systems; and
2.8(iii) enhanced security. A facility will be considered to have enhanced security if it
2.9has restricted access to the facility to selected personnel; permanent security guards; video
2.10camera surveillance; an electronic system requiring pass codes, keycards, or biometric
2.11scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
2.12In determining whether the facility has the required square footage, the square
2.13footage of the following spaces shall be included if the spaces support the operation of
2.14enterprise information technology equipment: office space, meeting space, and mechanical
2.15and other support facilities. For purposes of this subdivision, "computer software"
2.16includes, but is not limited to, expenditures related to and software utilized or loaded at
2.17the qualified data center, including maintenance, licensing, and software customization.
2.18(d) For purposes of this subdivision, "enterprise information technology equipment"
2.19means computers and equipment supporting computing, networking, or data storage,
2.20including servers and routers. It includes, but is not limited to: cooling systems,
2.21cooling towers, and other temperature control infrastructure; power infrastructure for
2.22transformation, distribution, or management of electricity used for the maintenance
2.23and operation of a qualified data center, including but not limited to exterior dedicated
2.24business-owned substations, backup power generation systems, battery systems, and
2.25related infrastructure; and racking systems, cabling, and trays, which are necessary for
2.26the maintenance and operation of the qualified data center.
2.27(e) A qualified data center may claim the exemptions in this subdivision for
2.28purchases made either within 20 years of the date of its first purchase qualifying for the
2.29exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
2.30(f) The purpose of this exemption is to create jobs in the construction and data
2.31center industries.
2.32(g) This subdivision is effective for sales and purchases made after June 30, 2012,
2.33and before July 1, 2042.
2.34EFFECTIVE DATE.This section is effective for sales and purchases made after
2.35June 30, 2013.
