Bill > H0609

This bill amends existing Idaho law to revise two tax exemptions: one for data center equipment and another for certain large capital investments. Specifically, it modifies the sales tax exemption for information technology equipment used in data centers by clarifying that the exemption applies to eligible server equipment but removes the exemption for new data center facilities themselves, while also setting a sunset date of July 1, 2036, for this exemption and adding new requirements for qualifying businesses, including that they must fully recover electricity costs and notify local water providers of their anticipated water usage. Additionally, the bill amends the property tax exemption for new capital investments, which currently applies to investments of at least $1 billion, by making technical corrections and adding a provision that a taxpayer cannot receive both the data center sales tax exemption and this property tax exemption on the same property. The bill also declares an emergency, meaning it will take effect immediately upon passage and approval.

Budget and Finance

Revenue and Taxation Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0609/