To claim this exemption, the purchaser of the equipment and software must pay the tax and then apply for a refund, once the facility is certified by the Minnesota Department of Employment and Economic Development (DEED). The refund request must be submitted within three and a half years from the time the invoice was issued. The investment and square-footage requirements are set out below:
- The facility must be located on a single parcel or contiguous parcels and must be comprised of one or more buildings with a combined square footage of 25,000 square feet or more.
- If "substantially refurbished," at least 25,000 square feet of the facility must have been rebuilt or modified.
- Constructed facilities must have a $30,000,000 investment within a four-year period.
- Substantially refurbished facilities must have a $50,000,000 investment within a two-year period.
It is important to note that for purposes of determining whether the investment criteria has been met within the investment period, the DEED will only include construction and refurbishment costs incurred after June 30, 2012 and purchases of enterprise IT equipment, software, and software maintenance made after June 30, 2013. However, if a qualified facility met the investment and square-footage criteria under the 2011 law, the exemption will apply to eligible purchases made after June 30, 2012. Further information regarding the exemption can be found in Minnesota Department of Revenue Notice #16-07.
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