Data-center law in Idaho

Subnational jurisdiction · as of 2026-09-06

Idaho's principal data-center-specific law is a sales and use tax exemption rather than a siting statute: Idaho Code section 63-3622VV exempts eligible server equipment and new data center facilities from state sales and use tax where a qualifying business entity commits to at least $250,000,000 in aggregate capital investment within five years of commencing construction and creates and maintains at least 30 new, non-seasonal, full-time jobs within two years of commencing operations.

Beyond this incentive, a data center in Idaho proceeds under the state's ordinary, generally applicable land-use, building, and environmental permitting framework (city or county zoning and site-plan approval, the state-adopted building code, and Department of Environmental Quality air-quality permitting for backup generator fleets), none of which is data-center-specific and none of which is separately catalogued here.

Instruments on record

1 instrument on record, grouped by the family of approval each one governs.

Public agreements

What fiscal agreements attach a data center to its host jurisdiction?

Idaho information technology equipment sales and use tax exemption (data centers)

In force

Idaho Code section 63-3622VV

Effective 2020-07-01 · Applies to private

On and after July 1, 2020, this section exempts from Idaho's sales and use tax the purchase or use of eligible server equipment and new data center facilities by a qualifying business entity or a contractor installing that equipment or building those facilities, unless the property has already been the subject of a business incentive under the Idaho Reimbursement Incentive Act.

A qualifying business entity is one that certifies to the State Tax Commission it will make at least $250,000,000 in aggregate capital investment in one or more Idaho data centers within five years after commencing construction, and will create and maintain at least 30 new, non-seasonal, full-time jobs at the data center within two years after commencing operations, paying at or above the county's average weekly wage; that entity holds a provisional exemption while making those investments, which becomes final and extends to all further qualifying purchases once the thresholds are met, or is revoked, triggering repayment of the sales or use tax that would otherwise have been due, if they are not.

Eligible server equipment includes servers, rack servers, chillers, storage devices, generators, cabling, and enabling software integral to or installed on that equipment; new data center facilities covers buildings and structural components used primarily as a data center.

Source: Full text of law