1.1                          A bill for an act 
  1.2             relating to taxation; exempting from the sales tax 
  1.3             purchases of materials and equipment used in 
  1.4             constructing a biomass electrical generating facility; 
  1.5             amending Minnesota Statutes 2000, section 297A.71, by 
  1.6             adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 297A.71, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 23.  [POULTRY LITTER BIOMASS GENERATION FACILITY 
  1.11  CONSTRUCTION MATERIALS AND EQUIPMENT.] Materials and supplies 
  1.12  used or consumed in, and equipment incorporated into, the 
  1.13  construction, improvement, or expansion of a facility using 
  1.14  biomass to generate electricity are exempt if: 
  1.15     (1) the facility is designed to utilize poultry litter 
  1.16  biomass as a primary fuel source; and 
  1.17     (2) the facility generates power under a contract approved 
  1.18  by the public utilities commission in accordance with the 
  1.19  biomass mandate imposed under section 216B.2424. 
  1.20     <b>[EFFECTIVE DATE.]</b> This section is effective for purchases 
  1.21  and sales after June 30, 2001, and before January 1, 2003.