TAXATION – Amends existing law to revise a sales tax exemption for data center equipment and to revise a property tax exemption for certain capital investments.

This bill revises Idaho's tax exemptions for data center equipment and capital investments. It extends a sales tax exemption for eligible server equipment, chillers, and new data center facilities (like buildings and cooling systems) but requires qualifying businesses to commit to investing at least $250 million in Idaho data centers within five years and creating 30+ new, full-time jobs. The exemption also mandates water conservation practices for data centers (e.g., recycling cooling water, using reclaimed water) and requires businesses to notify local water providers about anticipated water needs. If businesses fail to meet investment or job targets within the specified timeframes, they must pay retroactive sales or use taxes. The changes apply only to new data center projects meeting these criteria, not existing tax exemptions.