Effective June 30, 2025, the Minnesota Data Center Program (Minnesota Statute 297A.68) is amended to include new environmental and energy regulatory requirements, modifications to the duration of the sales tax refund, and a new classification of large-scale data centers. The state has instituted these changes to attract new data center investment and establish environmental safeguards for the local communities welcoming the new developments.
Key Changes
Sunset Date Removal
The revised statute removes the previously established sunset date of June 30, 2042. Qualifying data centers are now able to claim the sales tax refund on enterprise information technology and software purchases for up to 35 years.
Electricity Eligibility
Electricity purchases are no longer eligible for the sales tax refund, and a separate set of guidelines and fees have been established for data centers in the state.
Addition of Large-Scale Data Centers
Qualified data centers now include a new definition of qualified large-scale data centers that meet the following requirements:
- Square Feet: 25,000
- Investment: $250,000,000 (within a 60-month period as determined by the project)
- Laborers must be paid the prevailing wage
- Within three years after beginning operations, the facility must be certified under one or more of the following green building standards: BREEAM, Energy Star, LEED, UL 3223, Envision, or any other standard that is approved by the commissioner
Why Ryan?
With more than $100 billion of new data center project capital investment over the next five years across nearly all the contiguous United States, the Ryan Data Center Incentives team has a proven track record of working with data center businesses to secure significant savings as they develop, refurbish, and grow their offerings. To learn more about the latest trends in the industry, register to watch a free, pre-recorded webinar on Data Center Tax Incentives: Navigating National Landscapes hosted by Michael Falleroni and Matt Lowell.
TECHNICAL INFORMATION CONTACTS:
Michael Falleroni
Principal
Ryan
412.889.6434
michael.falleroni@ryan.com
Matt Lowell
Principal
Ryan
321.251.2924
matt.lowell@ryan.com
Austin Arnold
Senior Manager
Ryan
380.710.9686
austin.arnold@ryan.com
Brad Vincent
Consultant
Ryan
321.251.2929
bradley.vincent@ryan.com
Ryan Data Center Team
datacenters@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.