Bill > HB1546

This bill modifies the sales and use tax exemption for data centers in Virginia, introducing a tiered approach to tax exemptions for computer equipment and enabling software used in data centers. Starting July 1, 2024, the bill reduces the tax exemption percentage based on the type of investment: newly constructed data centers will receive a 100% exemption, first refresh cycle investments will receive a 50% exemption, and subsequent purchases will receive a 25% exemption. The bill also provides a pathway for data center operators to extend their tax exemptions through significant capital investments and job creation. Specifically, if a data center operator invests at least $35 billion and creates 1,000 new full-time jobs, they can extend the exemption through June 30, 2040. Furthermore, if they invest $100 billion and create 2,500 new full-time jobs, they can extend the exemption through June 30, 2050. The legislation maintains existing reporting requirements, mandating annual reports to the Virginia Economic Development Partnership Authority and biennial public reports analyzing the economic impact of these tax exemptions. The goal is to continue attracting data center investments to Virginia while gradually reducing the tax incentives over time.

Budget and Finance

https://lis.virginia.gov/cgi-bin/legp604.exe?251+sum+HB1546