Exemption of data centers modification for sales and use tax

This bill modifies Minnesota's sales and use tax exemption for data centers by creating a new category for "qualified large-scale data centers." It directly affects businesses constructing or refurbishing data center facilities in the state that meet specific size and investment thresholds. The key provision establishes that facilities with at least 25,000 square feet and a total investment of $250 million in construction, equipment, and software within 60 months will qualify for tax exemptions on enterprise information technology equipment and computer software purchases. The bill also adds a new statutory definition for "enterprise information technology equipment" to clarify what items are covered under the exemption. These changes are scheduled to take effect on July 1, 2026, and aim to provide tax relief for large-scale data center development while maintaining existing exemptions for smaller facilities.