House Bill 678 Summary

• Establishes the "Idaho Semiconductors for America Act" creating a sales and use tax exemption for construction and building materials used in qualifying semiconductor projects in Idaho, effective July 1, 2022.

• Requires applicants to submit project outlines to the Idaho Department of Commerce by December 31, 2026, with project completion required by December 31, 2040.

• Limits exemptions to "qualifying covered entities" that receive both meaningful federal semiconductor incentives (such as CHIPS for America Act funding) and state incentives under existing Idaho programs.

• Defines qualifying purposes as constructing, expanding, or modernizing facilities for semiconductor fabrication, assembly, testing, advanced packaging, or qualified research and development activities.

• Makes the entire exemption contingent on the enactment and federal funding of a new semiconductor incentive law by December 31, 2026; if no such incentive exists by that date, no projects may qualify for the exemption.