House Bill 279 Summary

• Exempts purchases of eligible server equipment and new data center facilities from Idaho sales and use tax, effective July 1, 2020, for qualifying business entities and their contractors.

• Excludes property that has received incentives under the Idaho reimbursement incentive act from the exemption.

• Establishes two categories of qualifying business entities: (1) entities that invested at least $1,000,000 in eligible server equipment before January 1, 2019 (eligible only through July 1, 2027), and (2) entities making capital investments of at least $250,000,000 within five years of construction commencement and creating at least 20 new jobs within two years of operations.

• Entities failing to meet investment and job creation requirements must repay sales or use taxes that would have been due; entities meeting requirements receive permanent exemption on all eligible server equipment and data center facility purchases.

• Authorizes the state tax commission to promulgate rules to administer and enforce the exemption provisions.