The bill amends Section 63-3622VV of the Idaho Code to revise the provisions regarding the Idaho Information Technology Equipment Sales Tax Exemption. The key changes include a specified exemption period for eligible server equipment and new data center facilities, which will be available from July 1, 2020, until March 1, 2025. After this date, the exemption will only be available for a limited time as outlined in subsection (2)(k) and will be subject to additional provisions in subsection (3). The bill also clarifies that the exemption will not apply to property that has received business incentives under the Idaho reimbursement incentive act.

Furthermore, the bill introduces new requirements for qualifying business entities, including a minimum capital investment of $250 million and the creation of at least 30 new jobs within two years of commencing operations. For those receiving the exemption after March 1, 2025, the exemption will expire seven years from when the provisional exemption becomes final. Additionally, qualifying business entities will be required to remit sales tax on items that would otherwise be exempt after the expiration of the exemption period. The state tax commission is granted the authority to create rules for administering these provisions and ensuring compliance. An emergency clause is included, allowing the act to take effect immediately upon passage and approval.

Statutes affected:
Bill Text: 63-3622VV