1.1 	A bill for an act
1.2 	relating to taxes; exempting materials used to construct a renewable energy plant 
1.3 	from the sale tax;amending Minnesota Statutes 2008, section 297A.71, by 
1.4 	adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 297A.71, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 42.Construction materials; renewable energy plants. (a) Materials and 
1.9 	supplies used or consumed in, and equipment incorporated into, the construction of a 
1.10 	facility that generates energy from a renewable energy source are exempt if the energy 
1.11 	is: (1) sold at retail; (2) sold to a utility for resale to retail customers; or (3) used directly 
1.12 	by a business.
1.13 	(b) For the purposes of this subdivision, "renewable energy source" means energy 
1.14 	generated from the following sources:
1.15 	(1) solar, which has the meaning given to "qualifying solar energy project" in  section 
1.16 	216B.2411, subdivision 2, paragraph (d), except that for a "qualifying solar electric 
1.17 	project" the 100-kilowatt peak generating capacity limit does not apply;
1.18 	(2) wind;
1.19 	(3) hydroelectric with a capacity of less than 100 megawatts;
1.20 	(4) hydrothermal;
1.21 	(5) hydrogen, provided that after January 1, 2010, the hydrogen must be generated 
1.22 	from the resources listed in this subdivision;
1.23 	(6) biomass, which includes, without limitation, landfill gas; rotating woody crops; 
1.24 	crop residues; an anaerobic digester system; biomass gasification; the predominantly 
2.1 	organic components of wastewater effluent, sludge, or related by-products from publicly 
2.2 	owned treatment works, but not including incineration of:
2.3 	(i) wastewater sludge or related by-products from publicly owned treatment works;
2.4 	(ii) mixed municipal solid waste; or
2.5 	(iii) refuse-derived fuel from mixed municipal solid waste; and
2.6 	(7) a district energy system fueled primarily by biomass.

2.7 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
2.8 	June 30, 2010.