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Idaho Statutes
Idaho Statutes are updated to the website July 1 following the legislative session.
REVENUE AND TAXATION
CHAPTER 35
COOPERATIVE ELECTRICAL ASSOCIATIONS — TAXING GROSS EARNINGS
63-3502B. Levy of tax on wind energy, solar energy or geothermal energy electrical production. [effective until january 1, 2026] (1) A wind energy tax or a geothermal energy tax shall be levied against every producer of electricity by means of wind energy or geothermal energy in the amount of three percent (3%) of such producer’s gross wind energy earnings or geothermal energy earnings.
(2) A solar energy tax shall be levied against every producer of electricity by means of solar energy in the amount of three and one-half percent (3.5%) of the producer’s gross solar energy earnings.
(3) This wind energy tax, solar energy tax or geothermal energy tax shall be in lieu of all other taxes on the property of such wind energy producer, of such solar energy producer or of such geothermal energy producer exempted pursuant to section 63-602JJ, Idaho Code.
(4) For purposes of the certification required by section 63-803, Idaho Code, and the limitations provided by section 63-802, Idaho Code, the taxes levied pursuant to subsection (2) of this section shall reduce the property tax to be levied to finance an annual budget, and shall not be included in the amount of property tax revenues to finance an annual budget for purposes of limitations on increases in the annual budget as provided in section 63-802, Idaho Code.
63-3502B. Levy of tax on wind energy production, solar energy production, geothermal energy electrical production, RATE-REGULATED ELECTRIC UTILITY COMPANIES, rate-regulated affiliated gas companies, and rate-regulated gas companies. [effective january 1, 2026] (1) A wind energy tax or a geothermal energy tax shall be levied against every producer of electricity by means of wind energy or geothermal energy in the amount of three percent (3%) of such producer’s gross wind energy earnings or geothermal energy earnings.
(2) A solar energy tax shall be levied against every producer of electricity by means of solar energy in the amount of three and one-half percent (3.5%) of the producer’s gross solar energy earnings.
(3) A kilowatt-hour tax shall be levied against every rate-regulated electric utility company operating in Idaho on all such electricity and electrical energy sold to retail customers in Idaho, as reported by such company to the Idaho public utilities commission; however, if such a report contains kilowatt-hour sales data for another state, the kilowatt-hour tax established under this section shall not be applied to those out-of-state sales. The kilowatt-hour tax shall be nine hundred twenty-three millionths of a dollar ($0.000923) per kilowatt-hour sold.
(4)(a) A thermal energy tax shall be levied against every rate-regulated affiliated gas company on all natural gas sold to retail customers in Idaho at a rate of ten thousand eight hundred two millionths of a dollar ($0.010802) per therm of natural gas sold.
(b) A thermal energy tax shall be levied against every rate-regulated gas company on all natural gas sold to retail customers in Idaho at a rate of three hundred twenty-nine hundred-thousandths of a dollar ($0.00329) per therm of natural gas sold. A separate thermal energy tax shall be levied against every rate-regulated gas company on all natural gas delivered to a transport gas customer at a rate of forty-one hundred-thousandths of a dollar ($0.00041) per therm of natural gas delivered to a transport gas customer by a rate-regulated gas company. For the purposes of this subsection, "transport gas customer" means an entity that purchases gas from a supplier other than a rate-regulated gas company but that contracts with a rate-regulated gas company to deliver gas to its meter.
(5) The wind energy tax, solar energy tax, geothermal energy tax, kilowatt-hour tax, and thermal energy tax provided in this section shall be in lieu of all other taxes on the property of such wind energy producer, solar energy producer, geothermal energy producer, rate-regulated electric utility company, rate-regulated affiliated gas company, or rate-regulated gas company exempted pursuant to section 63-602JJ, Idaho Code.
(6) For purposes of the certification required by section 63-803, Idaho Code, and the limitations provided by section 63-802, Idaho Code, the taxes levied pursuant to subsection (2) of this section shall reduce the property tax to be levied to finance an annual budget and shall not be included in the amount of property tax revenues to finance an annual budget for purposes of limitations on increases in the annual budget as provided in section 63-802, Idaho Code. Kilowatt-hour taxes and thermal energy taxes apportioned to each taxing district pursuant to section 63-3503C, Idaho Code, shall be treated as property tax revenue for the purposes of the limitations provided in section 63-802, Idaho Code.
(7) By January 1, 2027, rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies shall include the kilowatt-hour and thermal energy tax on the billings to its Idaho customers. The public utilities commission shall adjust the base tariff rates for customers to the extent those rates included a recovery of property taxes on operating property or the kilowatt-hour taxes or thermal energy taxes assessed pursuant to this section.
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