Idaho would join 20 other states currently offering sales tax incentives to data centers under newly introduced legislation.
Officials with the Idaho Department of Commerce are backing a measure that would offer sales tax rebates to eligible server equipment, which are typically replaced every three to five years in a data center.
The House Revenue and Taxation Committee unanimously agreed to send the proposal to a full legislative hearing on Feb. 27.
Bobbi-Jo Meulemann, the agency’s chief operations officer, says seven data centers are already located in Idaho, but this bill would help make the state more competitive for other data centers looking to relocate to the Gem State.
The estimated cost of the bill would result in an annual reduction of the state’s general fund budget by $531,000.