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

1.7 	Section 1. Minnesota Statutes 2004, section 272.02, is amended by adding a 
1.8 	subdivision to read:
1.9 		Subd. 84.Electric generation facility; personal property. Notwithstanding 
1.10 	subdivision 9, clause (a), attached machinery and other personal property which is part 
1.11 	of a 10.3 megawatt run-of-the-river hydroelectric generation facility and that meets the 
1.12 	requirements of this subdivision is exempt. At the time of construction, the facility must:
1.13 	(1) utilize between 12 and 16 turbine generators at a dam site existing on March 
1.14 	31, 1994;
1.15 	(2) be located on land within 3,000 feet of a 13.8 kilovolt distribution substation; and
1.16 	(3) be eligible to receive a renewable energy production incentive payment under 
1.17 	section 216C.41.
1.18 	Construction of the facility must be commenced after April 30, 2006, and 
1.19 	before January 1, 2009. Property eligible for this exemption does not include electric 
1.20 	transmission lines and interconnections or gas pipelines and interconnections appurtenant 
1.21 	to the property or the facility.

1.22 	EFFECTIVE DATE. This section is effective for property taxes levied in 2006, 
1.23 	payable in 2007, and thereafter.

2.1 	Sec. 2. Minnesota Statutes 2004, section 297A.71, is amended by adding a subdivision 
2.2 	to read:
2.3 		Subd. 37.Hydroelectric generating facility. Materials and supplies used or 
2.4 	consumed in the construction of a 10.3 megawatt run-of-the-river hydroelectric generating 
2.5 	facility that meets the requirements of this subdivision are exempt. To qualify for the 
2.6 	exemption under this subdivision, a hydroelectric generating facility must:
2.7 	(1) utilize between 12 and 16 turbine generators at a dam site existing on March 
2.8 	31, 1994;
2.9 	(2) be located on land within 3,000 feet of a 13.8 kilovolt distribution circuit; and
2.10 	(3) be eligible to receive a renewable energy production incentive payment under 
2.11 	section 216C.41.

2.12 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
2.13 	April 30, 2006, and on or before December 31, 2009.