Data centers sales and use tax exemption repealed, and contingent reduction in special education aid appropriations repealed.

This bill repeals a previous exemption that allowed large data centers to avoid paying sales and use taxes on their equipment and software. It directly affects businesses building or operating data centers in Minnesota by requiring them to pay standard taxes on purchases like servers, computers, and related materials. The legislation defines a "qualified large-scale data center" as a facility with at least 25,000 square feet and a total investment of $250 million in construction and technology over a six-year period. Additionally, the bill removes a special reduction in state funding for special education that was previously tied to the data center tax exemption. These changes take effect on July 1, 2026, ensuring that data center projects contribute to state revenue like other commercial developments.