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Ecolab project seeks sales‑tax exemption on construction materials for proposed Eagan R&D campus
Summary
Senate File 2854 would exempt construction materials for a large research and development campus and customer experience center (proposed by Ecolab) from sales tax to help secure a projected private investment; sponsor and company said the exemption would help attract the project; some senators flagged concerns about preferential tax treatment.
Senator Sarah Carlson presented Senate File 2854, a bill that would grant a sales‑tax exemption on construction materials and outfitting equipment for a qualifying research and development campus and customer experience center in Eagan. The sponsor said the first phase could exceed $200–$250 million and the entire project could top $500 million in private investment.
Under the bill the exemption would apply only to projects with at least 250,000 square feet of laboratory space and an initial capital cost threshold (the bill lists $200 million for a qualifying phase). The exemption would be administered as a refund and would be effective for qualifying purchases after June 30, 2025. Dakota County and the city of Eagan provided letters of support in committee materials.
Dr. Andy Cooper, senior vice president for research and development at Ecolab, testified that the company operates significant R&D in Minnesota and that a consolidated campus and customer experience center would help recruit and retain scientific staff and co‑locate disciplines for innovation. "These sorts of incentives help us make sure...we can co‑locate those scientists and engineers that I really need to do that here in Minnesota," Cooper said.
Senator Truskalski criticized the policy of creating exemptions for individual companies and warned of conflicts of interest for members and the potential for favoritism. The bill record includes a revenue estimate tied to the projected taxable materials for a qualifying project (sponsor referenced approximately $220 million in qualifying taxable materials for a first phase). Senator Carlson said the proposal requires private investment up front and that any exemption would be processed as a refund, with documentation to prevent abuse.
The committee laid the measure over for further consideration; sponsors said they would work with fiscal staff and counsel on details and that final project scope and qualification would be verified as the proposal advanced.
