This bill amends two sections of the Idaho Code related to taxation, specifically focusing on the Idaho Information Technology Equipment Sales Tax Exemption and the Tax Exemption for New Capital Investments. The amendments to Section 63-3622VV introduce a new timeframe for the sales tax exemption on eligible server equipment, extending it from July 1, 2020, to July 1, 2036. The bill clarifies that the exemption is available only to qualifying business entities and contractors involved in the installation of eligible server equipment, while also specifying that property subject to business incentives under the Idaho reimbursement incentive act is not eligible for this exemption. Additionally, it outlines new requirements for qualifying business entities, including significant capital investments and job creation, as well as stipulations regarding water consumption for data centers.

In Section 63-4502, the bill revises the eligibility criteria for the tax exemption for new capital investments, raising the minimum investment threshold to one billion dollars and defining the qualifying period for such investments. It also establishes that if a taxpayer receives the exemption under Section 63-3622VV, they will not be eligible for the exemption in this section for any property owned in Idaho. The bill emphasizes the need for the state tax commission to adopt necessary rules for implementation and declares an emergency for the act to take effect immediately upon passage and approval.

Statutes affected:
Bill Text: 63-3622VV, 63-4502