1.1 	A bill for an act
1.2 	relating to taxation; property; providing a property tax exemption for an electric 
1.3 	generation facility;amending Minnesota Statutes 2024, section 272.02, by adding 
1.4 	a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 106.Electric generation facility; personal property. (a) Notwithstanding 
1.9 	subdivision 9, clause (a), attached machinery and other personal property that are part of 
1.10 	an electric generation facility with more than 40 megawatts and less than 50 megawatts of 
1.11 	installed capacity and that meet the requirements of this subdivision are exempt from taxation 
1.12 	and payments in lieu of taxation. The facility must:
1.13 	(1) be designed to utilize natural gas as a primary fuel;
1.14 	(2) be owned and operated by a municipal power agency as defined in section 453.52, 
1.15 	subdivision 8;
1.16 	(3) be located within 1,000 feet of an existing natural gas pipeline;
1.17 	(4) satisfy a resource deficiency identified in an integrated resource plan filed under 
1.18 	section 216B.2422;
1.19 	(5) be located outside of the metropolitan area as defined in section 473.121, subdivision 
1.20 	2; and
2.1 	(6) have received, by resolution, the approval of the governing bodies of the city and 
2.2 	county in which the facility is located for the exemption of personal property provided in 
2.3 	this subdivision.
2.4 	(b) Construction of the facility must have commenced after January 1, 2026, and before 
2.5 	January 1, 2028. Property eligible for this exemption does not include electric transmission 
2.6 	lines and interconnections or gas pipelines and interconnections appurtenant to the property 
2.7 	or the facility.

2.8 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
2.9 	in 2029.