This bill revises the Idaho Information Technology Equipment Sales Tax Exemption by establishing a twenty-year exemption period for eligible server equipment and new data center facilities, contingent upon final approval certification from the state tax commission. For data centers that begin construction on or after April 1, 2026, the exemption will only apply to eligible server equipment. The bill also introduces new definitions and requirements for qualifying business entities, including increased capital investment thresholds of one billion dollars and job creation commitments. Additionally, it stipulates that taxpayers receiving the exemption for a data center constructed after the specified date will not be eligible for the new capital investment exemption for related properties.

Moreover, the bill amends Section 50-2903 of the Idaho Code to clarify definitions relevant to urban renewal and revenue allocation financing, including terms like "authorized municipality" and "base assessment roll." It allows properties associated with qualifying data centers to have their increased valuation added to the base assessment roll and clarifies conditions for modifying urban renewal plans. The bill also sets a limit on the revenue allocation area to 10% of the current assessed valuation of taxable property within a municipality and establishes a termination date for urban renewal plans not exceeding 20 years, with provisions for extensions. The act is set to take effect on April 1, 2026, following an emergency declaration.

Statutes affected:
Bill Text: 63-3622VV, 63-4502, 50-2903