Bill > H0820

This bill modifies existing Idaho tax laws, primarily concerning exemptions for data centers and large capital investments. It revises the sales tax exemption for data center equipment, extending it for twenty years from final approval and clarifying that for data centers starting construction after April 1, 2026, the exemption will only apply to eligible server equipment, not the entire facility. The bill also introduces new requirements for qualifying data centers seeking these exemptions, including agreements for electricity costs to fully cover utility expenses and mandatory notification to local water providers about anticipated water usage, encouraging water conservation efforts. Furthermore, it amends a property tax exemption for significant capital investments, preventing businesses that receive the data center sales tax exemption for projects starting construction after April 1, 2026, from also claiming this property tax exemption on the same data center property. Finally, the bill includes a technical correction to a code reference related to urban renewal financing and declares an emergency, setting the effective date of these changes to April 1, 2026.

Budget and Finance

Revenue and Taxation Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0820/