This 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 the establishment of a temporary 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 apply under specific conditions and will not affect taxpayers who received the exemption prior to March 1, 2025. Additionally, qualifying business entities that have received the exemption before this date will not face expiration after seven years, while those receiving it afterward will have a seven-year limit from when their provisional exemption becomes final.

The bill also introduces new definitions and clarifications regarding terms such as "qualifying business entity," "data center," and "eligible server equipment." It outlines the requirements for businesses to qualify for the exemption, including making significant capital investments and creating new jobs. Furthermore, it mandates that qualifying business entities that receive the exemption after March 1, 2025, must remit sales tax on items that would otherwise be exempt once the exemption expires. 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
Engrossment 1: 63-3622VV