AN ACT relating to taxation; amending Section 63-3622VV, Idaho Code, to revise provisions regarding the Idaho Information Technology Equipment Sales Tax exemption; amending Section 63-4502, Idaho Code, to limit eligibility for the tax exemption for new capital investments and to make technical corrections; amending Section 50-2903, Idaho Code, to provide a correct code reference; and declaring an emergency and providing retroactive application. (HB 897, ID)

Adds two criteria for qualification for data center tax break: ensuring water usage is compatible with local supply and using cost-covering electricity rates; narrows the original sales tax exemption to only be applicable to the internal servers for new data centers; expires tax breaks after 20 years for each project. Tax commission to report annually on revenue not collected as a result of this policy and every 5 years with an analysis of the effects of the exemption and data centers on Idaho’s economy, and energy and water resources.