1.1                          A bill for an act 
  1.2             relating to taxation; sales and use taxes; exempting 
  1.3             purchases of materials and equipment used in 
  1.4             constructing a biomass electrical generating facility; 
  1.5             amending Minnesota Statutes 1998, section 297A.25, by 
  1.6             adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 297A.25, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 79.  [CONSTRUCTION MATERIALS AND EQUIPMENT; BIOMASS 
  1.11  ELECTRICAL GENERATING FACILITY.] Purchases of construction 
  1.12  materials, supplies, and equipment used, incorporated into, or 
  1.13  consumed in the construction of a facility using biomass to 
  1.14  generate electricity are exempt from the sales and use taxes 
  1.15  imposed under this chapter, regardless of whether purchased by 
  1.16  the owner or a contractor, subcontractor, or builder, if: 
  1.17     (1) the facility exclusively utilizes residue wood, 
  1.18  sawdust, bark, chipped wood, or brush to generate electricity; 
  1.19     (2) the facility utilizes a reciprocated grate combustion 
  1.20  system; and 
  1.21     (3) the total gross capacity of the facility is 15 to 21 
  1.22  megawatts. 
  1.23     Sec. 2.  [EFFECTIVE DATE.] 
  1.24     Section 1 is effective for purchases and sales after the 
  1.25  date of final enactment.