Adds to existing law to provide a sales and use tax exemption for certain semiconductor projects.

For U.S. national security, supply chain protection, and economic prosperity, it is critical to expand domestic semiconductor fabrication, assembly, testing, advanced packaging, and research and development. Idaho is uniquely poised to accelerate the growth of the semiconductor industry, mitigate national security and supply chain risks, increase economic competitiveness, and protect intellectual property. With Federal investments like the CHIPS for America (CHIPS) Act, and the Facilitating American-Built Semiconductors Act, the government is competing with foreign countries by securing domestic supply chains and by bringing American semiconductor manufacturing jobs back to the United States. The Idaho Semiconductors for America Act (Idaho Act) provides a tax relief incentive for U.S. sponsored semiconductor expansions in Idaho. The Idaho Act exempts sales tax on the purchase or use of construction and building materials to construct, expand, or modernize a semiconductor facility in Idaho. To qualify for the exemption, a semiconductor company must also qualify for new federal incentives for the expansion of domestic fabrication, assembly, testing, advanced packaging, or research and development. All requests by semiconductor companies for incentives would be submitted to the Idaho Department of Commerce. All approved incentives will be governed by detailed agreements between the state and incented companies.