House Bill 521 Summary

• Exempts from sales and use tax the purchase or use of eligible server equipment and new data center facilities effective July 1, 2020, available only to qualifying business entities and contractors installing such equipment.

• Requires qualifying business entities to make capital investments of at least $250,000,000 within five years after commencement of construction and create and maintain at least 30 new jobs within two years after commencement of operations to obtain a final exemption.

• Defines eligible server equipment to include servers, rack servers, chillers, storage devices, generators, cabling, and enabling software used for data transmission and storage services in Idaho data centers.

• Requires data centers to have uninterruptible power supplies or generator power, sophisticated fire suppression and prevention systems, and enhanced physical security with restricted access.

• Excludes from the taxable market value of new construction any new construction of property that qualifies for a sales and use tax exemption under section 63-3622VV.