1.1 	A bill for an act
1.2 	relating to taxes; extending the eligibility period for the commencement of 
1.3 	construction of small biomass electric generation facilities that qualify for 
1.4 	property tax exemptions;amending Minnesota Statutes 2004, section 272.02, 
1.5 	subdivision 54.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 272.02, subdivision 54, is amended to read:
1.8 		Subd. 54.Small biomass electric generation facility; personal property.
 1.9 	Notwithstanding subdivision 9, clause (a), attached machinery and other personal property 
1.10 	which is part of an electrical generating facility that meets the requirements of this 
1.11 	subdivision is exempt. At the time of construction the facility must:
1.12 	(1) have a generation capacity of less than 25 megawatts;
1.13 	(2) provide process heating needs in addition to electrical generation; and
1.14 	(3) utilize agricultural by-products from the malting process and other biomass 
1.15 	fuels as its primary fuel source.
1.16 	Construction of the facility must be commenced after January 1, 2002, and before 
1.17 	January 1, 2006 June 30, 2007. Property eligible for this exemption does not include 
1.18 	electric transmission lines and interconnections or gas pipelines and interconnections 
1.19 	appurtenant to the property or facility.

1.20 	EFFECTIVE DATE. This section is effective for taxes levied in 2008, payable 
1.21 	in 2009, and thereafter.