About 90 percent of about 53,000 Idaho personal property taxpayers would see their annual assessments eliminated, under a measure that cleared the House Revenue and Taxation Committee.
The panel voted unanimously Tuesday to send the proposal to the House floor, with scant debate that belied the importance of the issue.
The bill, promoted by the Idaho Association of Counties, exempts companies' first $100,000 worth of business equipment, while also extending the break to railroads, utilities and pipeline companies.
Local governments will see roughly $20 million in annual revenue they stand to lose replaced by money generated by Idaho's sales tax.
This proposal is far more modest than the $120 million tax cut proposed by the Idaho Association of Commerce and Industry.
But lawmakers have concluded that plan is too ambitious.