Data Center Tax Breaks Divide Lawmakers in Virginia Budget Talks

Virginia Democrats are heading into budget negotiations with a major unresolved issue: the massive data centers that have reaped $1.6 billion in sales tax exemptions in the most recent fiscal year.

The Virginia Senate proposed ending the state’s data center tax exemptions, setting up a conflict with a House of Delegates-passed proposal that seeks to extend the program but add restrictions.

The future of the data center exemption is the biggest difference on tax policy between budget proposals (HB 30, SB 30) advanced Sunday by the respective chambers’ money committees. It comes as more than a dozen ...