1.1 	A bill for an act
1.2 	relating to taxation; providing a personal property
1.3 	tax exemption and a sales tax exemption for
1.4 	construction materials used for an electric generating
1.5 	facility; amending Minnesota Statutes 2004, sections
1.6 	272.02, subdivision 53; 297A.71, by adding a
1.7 	subdivision.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 272.02,
1.10 	subdivision 53, is amended to read:
1.11 		Subd. 53.Electric generation facility; personal
1.12 	property.  Notwithstanding subdivision 9, clause (a), attached
1.13 	machinery and other personal property which is part of a 3.2
1.14 	megawatt run-of-the-river hydroelectric generation facility and
1.15 	that meets the requirements of this subdivision is exempt.  At
1.16 	the time of construction, the facility must:
1.17 	(1) utilize two turbine generators at a dam site existing
1.18 	on March 31, 1994;
1.19 	(2) be located on publicly owned land and within 1,500 feet
1.20 	of a 13.8 kilovolt distribution substation; and
1.21 	(3) be eligible to receive a renewable energy production
1.22 	incentive payment under section 216C.41.
1.23 	Construction of the facility must be commenced after
1.24 	January 1, 2002 December 31, 2004, and before January 1, 2005 
1.25 	2007.  Property eligible for this exemption does not include
1.26 	electric transmission lines and interconnections or gas
2.1 	pipelines and interconnections appurtenant to the property or
2.2 	the facility.
2.3 	
EFFECTIVE DATE. This section is effective for sales after
2.4 	June 30, 2005.

2.5 	Sec. 2. Minnesota Statutes 2004, section 297A.71, is
2.6 	amended by adding a subdivision to read:
2.7 		Subd. 33.Hydroelectric generating facility. Materials
2.8 	and supplies used or consumed in the construction of a
2.9 	hydroelectric generating facility that meets the requirements of
2.10 	this subdivision are exempt.  To qualify for the exemption under
2.11 	this subdivision, a hydroelectric generating facility must:
2.12 	(1) utilize two turbine generators at a dam site existing
2.13 	on March 31, 1994;
2.14 	(2) be located on land within 2,500 feet of a 13.8 kilovolt
2.15 	distribution circuit; and 
2.16 	(3) be eligible to receive a renewable energy production
2.17 	incentive payment under section 216C.41.
2.18 	
EFFECTIVE DATE. This section is effective for sales made
2.19 	after December 31, 2004, and on or before December 31, 2007.