SF 1346

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:43am

A bill for an act
relating to taxation; sales and use; providing an exemption for qualified data
centers; amending Minnesota Statutes 2010, section 297A.71, by adding a
subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 297A.71, is amended by adding a
subdivision to read:

new text begin Subd. 43. new text end

new text begin Qualified data centers. new text end

new text begin (a) Materials and supplies used or consumed
in, and enterprise information technology equipment incorporated into, the construction,
improvement, or expansion of a qualified data center are exempt, and purchases of
enterprise information technology equipment for use in a qualified data center are exempt.
new text end

new text begin (b) Purchases of computer software for use in enterprise information technology
equipment exempted in paragraph (a) are also exempt.
new text end

new text begin (c) Electricity used or consumed in the operation of a qualified data center is exempt.
new text end

new text begin (d) For purposes of this exemption, "qualified data center" means a facility
comprised of one or more related buildings, consisting in the aggregate of at least
30,000 square feet, constructed or substantially refurbished or has a total investment
cost of at least $10,000,000, occurring after June 30, 2011, and used to house enterprise
information technology equipment, where the facility has the following characteristics:
(1) uninterruptible power supplies, generator backup power, or both; (2) sophisticated fire
suppression and prevention systems; and (3) enhanced security. A facility is considered
to have enhanced security if it has restricted access to the facility to selected personnel;
permanent security guards; video camera surveillance; and electronic system requiring
pass codes; keycards, or biometric scans, such as hand scans and retinal or fingerprint
recognition; or similar security features. For purposes of this paragraph, "substantially
refurbished" means that more than 75 percent of the square footage of the facility has been
rebuilt or modified. For purposes of determining whether the facility has at least 30,000
square feet, the square footage of the following spaces are included if the spaces support
or are necessary for the operation of enterprise information technology equipment: office
space, meeting space, and mechanical and other support facilities.
new text end

new text begin (e) For purposes of this exemption, "enterprise information technology equipment"
means computers and equipment supporting computing, networking, or data storage,
including servers and routers and it includes, but is not limited to: cooling systems,
cooling towers, and other temperature control infrastructure; power infrastructure for
transformation, distribution, or management of electricity used for the maintenance
and operation of a qualified data center, including but not limited to exterior dedicated
business-owned substations, backup power generation systems, battery systems, and
related infrastructure; and racking systems, cabling, and trays, that are necessary for the
maintenance and operation of the qualified data center.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011.
new text end