The bill revises the Idaho Information Technology Equipment Sales Tax Exemption and modifies eligibility criteria for tax exemptions related to new capital investments. It establishes a twenty-year sales tax exemption for eligible server equipment and new data center facilities, contingent upon final approval certification from the state tax commission. For data centers starting construction after April 1, 2026, the exemption will apply solely to eligible server equipment. The bill also introduces new definitions and requirements for qualifying business entities, including capital investment thresholds and job creation commitments, while adjusting the criteria for property tax exemptions for new facilities constructed before the specified date.

Additionally, the bill amends Section 50-2903 of the Idaho Code, providing clarifications on terms related to urban renewal and revenue allocation financing. It specifies that the base assessment roll will be adjusted for changes in property valuation due to significant capital investments in data centers and outlines conditions for modifying urban renewal plans. Properties under this section will not appear on property rolls prepared by the county assessor, and the state tax commission is tasked with implementing necessary rules. The bill is effective immediately upon passage and retroactively from January 1, 2026.

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