Bill > H0897

This bill modifies existing Idaho tax laws, primarily concerning data centers and large capital investments. It revises the sales tax exemption for data center equipment, now limiting it to eligible server equipment for data centers that commenced construction on or after April 1, 2026, and requiring these entities to recover all electricity costs from their utility provider and notify local water providers of their anticipated water usage. The bill also adjusts the property tax exemption for new capital investments, ensuring that for tax years beginning in 2026 and thereafter, the non-taxable amount is adjusted annually based on changes in local taxing district budgets, and it clarifies that this exemption applies only to new plant and building facilities that commenced construction prior to April 1, 2026. Additionally, a technical correction is made to a code reference within the definitions related to urban renewal agencies. The bill declares an emergency and provides for retroactive application to January 1, 2026.

Budget and Finance

Ways and Means Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0897/