Bill > H0315

This bill amends Idaho's existing sales tax exemption for information technology equipment by extending and modifying key provisions related to data centers and server equipment. The bill maintains the current sales tax exemption for eligible server equipment and new data center facilities but introduces important changes, including limiting the exemption's availability after March 1, 2025, to qualifying business entities that have specific investment and job creation requirements. Specifically, a qualifying business entity must invest at least $250 million in one or more data centers within five years and create at least 30 new full-time jobs within two years of commencing operations. Notably, the bill adds a provision that any business that received the exemption before March 1, 2025, will not be subject to a seven-year exemption expiration, while new applicants after that date will have a seven-year exemption period. Furthermore, for entities receiving the exemption after March 1, 2025, the bill requires them to remit sales tax on previously exempt items after their exemption expires, with those funds being transferred to the state's tax relief fund. The bill aims to provide continued support for technology infrastructure development while introducing more structured guidelines for tax exemptions.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0315/