Idaho Capitol Watch
HB 897: TAXATION – Amends existing law to revise a sales tax exemption for data center equipment and to revise a certain property tax exemption for certain capital investments.
HB 897 revises the sales tax exemption for data center equipment by adding energy and water consumption criteria for qualification, limiting the exemption only to internal servers and to a maximum of 20 years per project, modifying property tax abatements for projects after mid-2026 to prevent tax shifts, and mandating annual and five-year reports by the Tax Commission on revenue impacts and effects on the economy, energy, and water resources. Projects under construction receive grandfathering under original terms but with the new time limit. The Senate amended the bill by changing trigger dates, adding detailed annual reporting by data center operators on usage and local impacts, and removing certain property tax provisions. The bill passed the Senate as amended and is referred to the House Revenue & Taxation Committee for concurrence.
Status
Referred to Committee (House) (April 2, 2026) · Originated in the Idaho House · Introduced March 13, 2026
Sponsors
- WAYS AND MEANS COMMITTEE
Committees
- JRA for Printing
- Revenue & Taxation for concurrence recommendation
Bill history
- March 25, 2026 — Senate: Reported out of committee; to 14th Order for amendment (amended)
- March 30, 2026 — Senate: Amendments ordered printed (amended)
- March 30, 2026 — Senate: Reported out as amended; filed for first reading (amended)
- March 30, 2026 — Senate: Amendments reported printed (amended)
- March 30, 2026 — Senate: Read first time as amended in the Senate; Filed for Second Reading (amended)
- March 31, 2026 — Senate: Read second time as amended in the Senate, filed for Third Reading (amended)
- April 1, 2026 — Senate: Read third time as amended in the Senate – PASSED - 34-0-1AYES – Adams, Anthon, Bernt, Bjerke(Bjerke), Blaylock, Burtenshaw, Carlson, Cook, Den Hartog, Galloway, Grow, Guthrie, Harris, Hart, Keyser, K (amended)
- April 2, 2026 — House: Referred to Revenue & Taxation for concurrence recommendation
If this preview does not update automatically, use the full page link.