A new piece of legislation put forward by the state of Idaho could offer tax rebates on selected server equipment for local data centers.

Various types of tax incentives have been previously rolled out across 20 American states.

A new Ida-home for data centers?

Idaho Department of Commerce officials are backing the measure, which would render the state more attractive to companies considering new data center projects. They are also planning to offer rebates for existing data centers when they renew equipment, which typically occurs every three to five years.

The proposal which, if confirmed, will result in an approximate $531,000 reduction of the state’s annual budget, will be submitted to a full legislative hearing. If passed, it would make Idaho the twenty-first state offering tax incentives to data centers.

Other states offering such perks include Utah, and Iowa: In 2007, the State introduced the Iowa Data Center Business Property Exemption and the Iowa Web Search Portal Exemption, the former offering sales and use tax exemptions on property such as chillers and servers, and the latter, which specifically applies to Google, offering exemptions to web search portal businesses, defined as any “entity among whose primary businesses is to provide a search portal to organize information.”