Minnesota SF 868: Qualified data centers sales tax exemption expansion

Bill Text

01/24/13 REVISOR EAP/JC 13-0985 asintroduced
A bill for an act1.1
relating to taxation; sales and use; providing tax exemption for qualified data1.2
centers; amending Minnesota Statutes 2012, section 297A.68, subdivision 42.1.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.4
Section 1. Minnesota Statutes 2012, section 297A.68, subdivision 42, is amended to1.5
read:1.6
Subd. 42. Qualified data centers. (a) Purchases of enterprise information1.7
technologyequipmentandcomputersoftwareforuseinaqualifieddatacenterareexempt.1.8
The tax on purchases exempt under this paragraph must be imposed and collected as if the1.9
rate under section 297A.62, subdivision 1, applied, and then refunded after June 30, 2013,1.10
inthemannerprovidedinsection297A.75. Thisexemptionincludesenterpriseinformation1.11
technology equipment and computer software purchased to replace or upgrade enterprise1.12
information technology equipment and computer software in a qualified data center.1.13
(b)Electricityusedorconsumedintheoperationofaqualifieddatacenterisexempt.1.14
(c) For purposes of this subdivision, "qualified data center" means a facility in1.15
Minnesota:1.16
(1)thatiscomprisedofoneormorebuildingsthatconsistintheaggregateofatleast1.17
30,00025,000squarefeet,andthatarelocatedonasingleparceloroncontiguousparcels,1.18
where the total cost of construction or refurbishment, investment in enterprise information1.19
technology equipment, and computer software is at least $50,000,000 $20,000,000 within1.20
a 24-month 48-month period;1.21
(2) that is constructed or substantially refurbished after June 30, 2012, where1.22
"substantially refurbished" means that at least 30,000 25,000 square feet have been rebuilt1.23
or modified; and, including:1.24
Section 1. 1
SENATE
STATE OF MINNESOTA
EIGHTY-EIGHTH LEGISLATURE S.F. No. 868
(SENATE AUTHORS: SCHMIT, Bonoff, Rosen and Reinert)
DATE D-PG OFFICIAL STATUS
02/28/2013 447 Introduction and first reading
Referred to Taxes
03/05/2013 576 Author added Reinert

01/24/13 REVISOR EAP/JC 13-0985 asintroduced
(i) installation of enterprise information technology equipment, computer software,2.1
environmental control, and energy efficiency improvements; and2.2
(ii) building improvements; and2.3
(3) that is used to house enterprise information technology equipment, where the2.4
facility has the following characteristics:2.5
(i) uninterruptible power supplies, generator backup power, or both;2.6
(ii) sophisticated fire suppression and prevention systems; and2.7
(iii) enhanced security. A facility will be considered to have enhanced security if it2.8
hasrestrictedaccesstothefacilitytoselectedpersonnel;permanentsecurityguards;video2.9
camera surveillance; an electronic system requiring pass codes, keycards, or biometric2.10
scans,suchashandscansandretinalorfingerprintrecognition;orsimilarsecurityfeatures.2.11
In determining whether the facility has the required square footage, the square2.12
footage of the following spaces shall be included if the spaces support the operation of2.13
enterpriseinformationtechnologyequipment: officespace,meetingspace,andmechanical2.14
and other support facilities. For purposes of this subdivision, "computer software"2.15
includes, but is not limited to, expenditures related to and software utilized or loaded at2.16
the qualified data center, including maintenance, licensing, and software customization.2.17
(d) For purposes of this subdivision, "enterprise information technology equipment"2.18
means computers and equipment supporting computing, networking, or data storage,2.19
including servers and routers. It includes, but is not limited to: cooling systems,2.20
cooling towers, and other temperature control infrastructure; power infrastructure for2.21
transformation, distribution, or management of electricity used for the maintenance2.22
and operation of a qualified data center, including but not limited to exterior dedicated2.23
business-owned substations, backup power generation systems, battery systems, and2.24
related infrastructure; and racking systems, cabling, and trays, which are necessary for2.25
the maintenance and operation of the qualified data center.2.26
(e) A qualified data center may claim the exemptions in this subdivision for2.27
purchases made either within 20 years of the date of its first purchase qualifying for the2.28
exemption under paragraph (a), or by June 30, 2042, whichever is earlier.2.29
(f) The purpose of this exemption is to create jobs in the construction and data2.30
center industries.2.31
(g) This subdivision is effective for sales and purchases made after June 30, 2012,2.32
and before July 1, 2042.2.33
EFFECTIVE DATE. This section is effective for sales and purchases made after2.34
June 30, 2013.2.35
Section 1. 2