Adds to existing law to provide a sales and use tax rebate to certain developers of certain information technology equipment companies, to provide definitions, to establish provisions regarding a claim, and to provide for approval by the tax commission.

Idaho is well positioned to attract significant capital investment in the rapidly growing data center industry. The safe and secure storage of data continues to be a critical factor for growing companies throughout the world, and Idaho is an ideal location to site multiple large-scale data centers which tend to cluster in states with available land, competitive energy costs, minimal risk of natural disasters and an ideal climate. Currently, Idaho is not competitive in attracting large-scale data center projects as over 20 states - including theborderingstatesofWashingtonandWyoming-offerexemptionsorrebatesforsalestaxespaidoneligible serverequipment,whicharetypicallyreplacedinadatacentereverythreetofiveyears. Furthermore,Oregon and Montana do not have a retail sales tax and therefore no data center equipment is subject to a sales tax. Establishing the Idaho Information Technology Equipment Tax Rebate will enable Idaho to compete for these projects. This legislation provides a sales tax rebate on eligible server equipment that would benefit both the existing data centers in Idaho, as well as attracting new data centers to the state. TheprovisionsofSection1ofthisactshallbenull, void, andofnoforceandeffectonandafterJuly1, 2024.