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Virginia House and Senate Release Competing Budget Proposals Ahead of July 1 Deadline
Virginia Senate budget proposal ends data center tax exemption to raise over $1 billion for education, health care, and tax rebates, amid concerns over economic impacts.
- Sunday, the Virginia Senate proposed ending the data center sales tax exemption, which would expire on January 1, 2027, adding over $1 billion in revenue, as money committees advanced amendments.
- The exemption, in place since 2010, helped spur Virginia's data center growth, which is home to 35% of global capacity, but JLARC estimates it cost $2.7 billion in foregone revenue.
- Economic studies warn that ending the exemption could cost up to $71.5 billion and prompt companies to leave, despite the data center industry generating more than $5 billion in tax revenue and supporting tens of thousands of jobs.
- The Senate pairs the revenue change with a $100/$200 tax rebate, aiming to invest in education and health care, while the House omits the measure and less than three weeks remain to reconcile differences.
- The Senate balances the measure with new revenue streams like retail cannabis and an 11% firearms tax, while the House accounts for $29.5 million from internet gaming, reflecting divergent spending plans.
12 Articles
12 Articles
Senators propose phasing out data center tax credit, House budget keeps it
In an aerial view, an Amazon Web Services data center is shown situated near single-family homes on July 17, 2024 in Stone Ridge, Virginia. (Photo by Nathan Howard/Getty Images)On Sunday, the Virginia House of Delegates and Senate money committees unveiled their changes to former Gov. Glenn Youngkin’s final $212 billion budget proposal. One of the major divergences between the two bodies’ amendments came down to how to handle the sales and use t…
Inside Climate News
ecotopical.comVirginia Senate Proposes to End Data Center Tax Exemption in January
Leadership said its ‘firm as concrete’ in holding to the date. The industry warns it could halt investment in the state.By Charles PaullinRICHMOND, Va.—The Virginia Senate’s Finance and Appropriations Committee approved budget legislation for the coming fiscal year that ends a tax exemption for data centers on January 1.
Virginia House and Senate release competing budget proposals ahead of July 1 deadline
RICHMOND, Va. The Virginia House and Senate have each released proposed changes to the state's new two-year budget, which is set to take effect July 1. The two chambers will now need to reconcile several key differences before sending a final version to Gov. Abigail Spanberger.One difference between the two proposals involves pay raises for teachers and state workers.Both chambers propose raises in each of the two budget years, but the House ver…
General Assembly budget proposals address federal cuts, ending data center incentives
An earlier sunset for data center tax exemptions, wage increases for educators and state employees and premium assistance for health insurance bought through the Marketplace were included in budget amendments presented by the General Assembly on Sunday. Biennial budget proposals by the General Assembly’s money committees differed widely between the two chambers — the House proposal outlines $71.5 billion in appropriations over the biennium whil…
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