1.1 	A bill for an act
1.2 	relating to taxes; extending the eligibility period for the commencement of 
1.3 	construction of biomass electric generation facilities that qualify for property tax 
1.4 	exemptions;amending Minnesota Statutes 2004, section 272.02, subdivision 45.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 272.02, subdivision 45, is amended to read:
1.7 		Subd. 45.Biomass electrical generation facility; personal property.
 1.8 	Notwithstanding subdivision 9, clause (a), attached machinery and other personal property 
1.9 	which is part of an electrical generating facility that meets the requirements of this 
1.10 	subdivision is exempt. At the time of construction, the facility must:
1.11 	(1) be designed to utilize biomass as established in section  216B.2424 as a primary 
1.12 	fuel source; and 
1.13 	(2) be constructed for the purpose of generating power at the facility that will be sold 
1.14 	pursuant to a contract approved by the Public Utilities Commission in accordance with 
1.15 	the biomass mandate imposed under section  216B.2424. 
1.16 	Construction of the facility must be commenced after January 1, 2000, and before 
1.17 	December 31, 2002 2005. Property eligible for this exemption does not include electric 
1.18 	transmission lines and interconnections or gas pipelines and interconnections appurtenant 
1.19 	to the property or facility.

1.20 	EFFECTIVE DATE. This section is effective for taxes levied in 2006, payable 
1.21 	in 2007, and thereafter.