HB 609: Guidelines for Data Centers (2026)

Summary: Requires data centers to cover their full electricity costs and adds a sunset review of tax exemptions, but falls short of meaningfully addressing long-term water impacts.

ICL’s Position: Support

Current Bill Status: Committee - House Revenue & Taxation

Issue Areas: Data Centers, Energy, Water

House Bill 609, introduced by Rep. Chris Bruce (R-District 23), narrows tax exemptions for data centers, prevents companies from stacking certain incentives, and adds a sunset date of July 1, 2036. This gives lawmakers a chance to review how these exemptions affect Idaho’s economy, energy system, and water resources before deciding whether to extend them beyond 2036..

For data centers receiving exemptions after March 1, 2026, the bill requires that they pay for the full cost of the electricity needed to serve their facility. In other words, utilities must recover all costs from the data center itself, rather than putting energy costs onto other customers. This helps protect Idaho households and small businesses from subsidizing large corporate power demands.

Unfortunately, the water language is weaker. While data centers must notify local water providers of their expected water use, the bill does not require specific conservation measures. Data centers are simply “encouraged…to conserve, reuse, and replace water,” but action is not mandatory. Given the strain data centers place on local water supplies, ICL would prefer stronger requirements to provide better long-term protection.

While this bill does not fully address energy and water concerns, it is a meaningful step toward greater accountability. For that reason, we support House Bill 609.