Bill > HB2685

This bill modifies the existing retail sales and use tax exemption for data centers in Virginia by specifically excluding new data centers constructed after July 1, 2025, in Planning District 8 from receiving the tax exemption between July 1, 2025, and July 1, 2030. Planning District 8 encompasses the Northern Virginia area, which includes counties like Arlington, Fairfax, and Loudoun, as well as cities like Alexandria, Fairfax City, and Falls Church. Currently, data centers in Virginia can receive a sales tax exemption for computer equipment and enabling software if they meet certain investment and job creation requirements, such as making a capital investment of at least $150 million and creating at least 50 new jobs. The new provision effectively limits this tax benefit for new data center construction in the Northern Virginia region during the specified time frame, potentially impacting the economic incentives for data center development in that area. The bill maintains existing exemptions for data centers constructed before July 1, 2025, in Planning District 8 and does not affect data centers in other parts of Virginia.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB2685