Idaho State Tax Commission

New sales tax exemption for certified data centers in Idaho

Starting July 1, you may be able to benefit from a sales tax exemption when building new data centers and buying eligible server equipment in Idaho. It’s available to the following: 

  • Qualifying business entities. 
  • Contractors installing eligible server equipment for qualifying business entities. 
  • Contractors building new data center facilities for qualifying business entities. 

To use the exemption, you’ll need to certify with us that you’re a qualifying business entity. This includes: 

  • Making capital investments of at least $250 million in one or more Idaho data centers within the first five years of starting construction, and 
  • Creating and maintaining at least 30 new jobs in the county where the data center is located (not including jobs moved from one Idaho location to another) within two calendar years of receiving a certificate of occupancy. 

You’ll owe tax on items you bought exempt from tax unless you meet the capital investment and job creation criteria within the required time frames. 

If you use this exemption, you or your affiliates won’t be eligible for business incentives provided by the Idaho Tax Reimbursement Incentive program (see Idaho Code sections 67-4737 through 67-4744).  

For more information about the new data center exemption:

  • Review Idaho Code section 63-3622VV.
  • Contact the sales tax audit group at (208) 334-7668 or taxrep@tax.idaho.gov with any questions, including how to certify. 
  • Stay tuned to our website for any updates. 

 

Posted 07-01-2020
tax pros general

This information is for general guidance only. Tax laws are complex and change regularly. We can't cover every circumstance in our guides. This guidance may not apply to your situation. Please contact us with any questions. We work to provide current and accurate information. But some information could have technical inaccuracies or typographical errors. If there's a conflict between current tax law and this information, current tax law will govern.