SF 4908
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/27/2026 09:22 a.m.
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A bill for an act
relating to taxation; sales and use; providing an exemption for construction materials
for certain projects financed through an act relating to capital investment.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin CONSTRUCTION MATERIALS PURCHASED BY CONTRACTORS;
EXEMPTION FOR CERTAIN PUBLIC ENTITIES.
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new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
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(a) Materials, supplies, and equipment purchased
by a contractor, subcontractor, or builder and used in the construction, reconstruction, repair,
maintenance, or improvement of eligible capital projects financed in whole or in part by
the following public entities are exempt:
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(1) the state of Minnesota; and
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(2) local governments as defined in Minnesota Statutes, section 297A.70, subdivision
2, paragraph (d), clause (2).
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(b) The tax must be imposed and collected as if the rates under Minnesota Statutes,
section 297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner
provided for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
Refunds for eligible purchases must not be issued until after June 30, 2026.
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(c) For the purposes of this section, "eligible capital project" means a capital project
subject to Minnesota Statutes, section 16A.642, 16A.695, or 16A.86, that receives a direct
appropriation or grant from an appropriation of state money in a bill enacted in 2026.
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new text begin Subd. 2. new text end
new text begin Appropriation. new text end
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The amount required to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.
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new text begin EFFECTIVE DATE. new text end
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This section is effective for sales and purchases made after June
30, 2026.
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