TAXATION – Amends existing law to revise a sales tax exemption for data center equipment and to revise a certain property tax exemption for certain capital investments.

This bill updates Idaho's tax exemptions for data center equipment and property to encourage new data center development in the state. It allows qualifying businesses that invest at least $250 million in data center facilities and create at least 30 new full-time jobs to receive a 20-year sales tax exemption on eligible server equipment and new data center facilities. The law also includes technical corrections to existing property tax exemption rules and adds new requirements for businesses receiving exemptions after April 1, 2026, including electricity rate agreements and water conservation plans. Businesses that fail to meet their investment and job creation commitments within specified timeframes must pay the sales taxes they were initially exempted from.