This bill modifies Idaho's tax exemptions for data center operations, extending a sales tax exemption for data center equipment and revising property tax rules for capital investments. It requires businesses to invest at least $250 million in data center facilities and create 30 new full-time jobs within specific timeframes to qualify for the exemptions. The legislation also introduces new requirements for companies starting construction on or after April 1, 2026, including electricity rate agreements and water consumption planning with local providers. Businesses that fail to meet these investment and job creation requirements must pay the taxes that would have otherwise been owed.
This bill adjusts funding and staffing levels for two Idaho state agencies for fiscal year 2027. It increases money and authorized positions for the Office of Species, Minerals, and Energy Coordination while reducing both funding and staff positions for the Idaho State Historical Society by the same amount. The legislation also allows the Office of Species, Minerals, and Energy Coordination to move money between different budget categories without restrictions. These changes take effect on July 1, 2026, and the bill was signed into law by the Governor.
H 676 amends Idaho water law to explicitly allow municipalities to secure rights for geothermal water used in heating and cooling systems. It requires municipal applicants to provide detailed documentation on where and how low-temperature geothermal water will be injected back into the ground after use. This update revises application rules and definitions to accommodate geothermal projects while ensuring environmental compliance. The bill passed the Idaho House of Representatives in February 2026 with strong bipartisan support.
