Senators propose phasing out data center tax credit, House budget keeps it

By: Shannon Heckt

Outlets: Virginia Mercury

Published: February 24, 2026

Words: 839

Last Updated: 2 weeks, 3 days ago


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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 tax exemption for data centers.

The Senate budget proposal would phase out the sales tax exemption for the industry on Jan. 1, 2027 – an expedited sunset from the …

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