Minnesota legislation · 94th Legislature 2025-2026
Minnesota HF4716: Construction materials sales and use tax exemption provided for projects financed through an act relating to capital investment.
Status: In committee, March 25, 2026
What the bill says
A bill for an act relating to taxation; sales and use; providing an exemption for construction materials for certain projects financed through an act relating to capital investment. new text begin [ADDED: Subdivision 1.] new text end new text begin [ refund.] new text end new text begin [ADDED: (a) Materials, supplies, and equipment purchased by a contractor, subcontractor, or builder and used in the construction, reconstruction, repair, maintenance, or improvement of eligible capital projects financed in whole or in part by the following public entities are exempt:] new text end new text begi.
From the introduced text, March 25, 2026:
A bill for an act relating to taxation; sales and use; providing an exemption for construction materials for certain projects financed through an act relating to capital investment. new text begin [ADDED: Subdivision 1.] new text end new text begin [ refund.] new text end new text begin [ADDED: (a) Materials, supplies, and equipment purchased by a contractor, subcontractor, or builder and used in the construction, reconstruction, repair, maintenance, or improvement of eligible capital projects financed in whole or in part by the following public entities are exempt:] new text end new text begin [ and] new text end new text begin [ADDED: (2) local governments as defined in Minnesota Statutes, section 297A.70, subdivision 2, paragraph (d), clause (2).] new text end new text begin [ADDED: (b) The tax must be imposed and collected as if the rates under Minnesota Statutes, section 297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible purchases must not be issued until after June 30, 2026.] new text end new text begin [ADDED: (c) For the purposes of this section, "eligible capital project" means a capital project subject to Minnesota Statutes, section 16A.642, 16A.695, or 16A.86, that receives a direct appropriation or grant from an appropriation …