Here’s what House lawmakers want to require of data centers to keep their sales tax break

By: Shannon Heckt

Outlets: Virginia Mercury

Published: April 29, 2026

Words: 910

Last Updated: 2 months, 1 week ago

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As lawmakers work behind closed doors to finalize the state’s $212 billion budget before the next fiscal year begins in July, negotiations hinge on whether the data center industry’s sales and use tax exemption should end, or continue with new requirements.

The Senate version of the budget — arguably the most controversial part of either plan — completely eliminates the 5.6% tax exemption in an attempt to recoup the average annual loss of …

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