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Data‑center tax change sparks lengthy committee debate over fiscal cost, energy use and open-ended subsidy risk
Summary
House File 12 77 would convert a refund-based sales-tax exemption for qualified data‑center equipment into an upfront exemption and create a separate, non‑sunsetting category for very large new facilities, prompting extended committee debate.
Committee members devoted extended time to House File 12 77, a proposal to change the timing and scope of Minnesota's existing sales-tax exemption for data-center machinery and equipment. The bill would move certain qualified data-center costs from a refund-based mechanism to an upfront exemption and would add a definition for "large" new facilities that, as drafted, would not carry a statutory sunset.
Chair Gomez led a lengthy policy statement, noting national and industry trends and citing published reporting that projects significant growth in data-center power demands. "One of the hard things about our state that makes us appealing...is our temperature," Gomez said, noting that cooler ambient air reduces…
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