{
  "id": "va-datacenter-salestax-exemption-58-1-609-3-18-19",
  "jurisdiction": "VA",
  "kind": "statute",
  "status": "enacted",
  "title": "Data Center Retail Sales and Use Tax Exemption (Va. Code § 58.1-609.3(18)-(19))",
  "citation": "Va. Code § 58.1-609.3(18)-(19)",
  "docket_no": null,
  "agency": "Virginia Department of Taxation; Virginia Economic Development Partnership Authority (VEDP)",
  "utility": null,
  "verification": "verified",
  "updated_at": "2026-08-19T22:38:23.738573+00:00",
  "record_url": "https://verifiedatlas.com/i/va-datacenter-salestax-exemption-58-1-609-3-18-19/",
  "snapshot_built_at": "2026-09-14T14:33:17+00:00",
  "sources": [
    {
      "url": "https://law.lis.virginia.gov/vacode/title58.1/chapter6/section58.1-609.3/",
      "pinpoint": "subdivision 18.a",
      "quote": "Beginning July 1, 2010, and ending June 30, 2035, except as provided in subdivision 19, computer equipment or enabling software purchased or leased for the processing, storage, retrieval, or communication of data, including but not limited to servers, routers, connections, and other enabling hardware, including chillers and backup generators used or to be used in the operation of the equipment exempted in this paragraph, provided that such computer equipment or enabling software is purchased or leased for use in a data center, which includes any data center facilities located in the same locality as the data center that are under common ownership or affiliation of the data center operator, that (i) is located in a Virginia locality; (ii) results in a new capital investment on or after January 1, 2009, of at least $150 million; and (iii) results in the creation on or after July 1, 2009, of at least 50 new jobs by the data center operator and the tenants of the data center, collectively, associated with the operation or maintenance of the data center provided that such jobs pay at least one and one-half times the prevailing average wage in that locality. The requirement of at least 50 new jobs is reduced to 10 new jobs if the data center is located in a distressed locality at the time of the execution of a memorandum of understanding with the Virginia Economic Development Partnership Authority. Additionally, the requirement of a $150 million capital investment shall be reduced to $70 million for data centers that qualify for the reduced jobs requirement.",
      "quote_chars": 1578,
      "title": "Code of Virginia § 58.1-609.3. Commercial and industrial exemptions",
      "source_type": "statute",
      "verification": "verified"
    },
    {
      "url": "https://law.lis.virginia.gov/vacode/title58.1/chapter6/section58.1-609.3/",
      "pinpoint": "subdivisions 19.c-d",
      "quote": "If on or after January 1, 2023, but before July 1, 2035, a data center operator that has entered into a memorandum of understanding pursuant to subdivision b (i) makes or causes to be made a capital investment of at least $35 billion in data centers in localities identified in a memorandum of understanding and (ii) creates at least 1,000 new full-time jobs ... the data center operator shall be eligible to continue to utilize the exemption set forth in subdivision 18 through June 30, 2040. ... If on or after January 1, 2023, but before July 1, 2040, a data center operator ... (i) makes a total capital investment of at least $100 billion, inclusive of any investment made pursuant to subdivision c, in data centers in the localities identified in such memorandum of understanding and (ii) creates a total of at least 2,500 new full-time jobs ... the data center operator shall be eligible to utilize the exemption set forth in subdivision 18 through June 30, 2050.",
      "quote_chars": 970,
      "title": "Code of Virginia § 58.1-609.3. Commercial and industrial exemptions",
      "source_type": "statute",
      "verification": "verified"
    },
    {
      "url": "https://jlarc.virginia.gov/pdfs/reports/Rpt598-2.pdf",
      "pinpoint": "Summary, p.i",
      "quote": "Data centers provide positive benefits to Virginia’s economy mostly because of the industry’s substantial capital investment. The primary benefit comes from the initial construction of data centers. Most construction spending likely remains in the state economy because much of it goes to Virginia-based businesses providing construction materials and services.",
      "quote_chars": 361,
      "title": "JLARC Report 598, \"Data Centers in Virginia\" (Commission draft)",
      "source_type": "government",
      "verification": "verified"
    },
    {
      "url": "https://jlarc.virginia.gov/pdfs/reports/Rpt598-2.pdf",
      "pinpoint": "Summary, p.iii",
      "quote": null,
      "quote_chars": 357,
      "title": "JLARC Report 598, \"Data Centers in Virginia\" (Commission draft)",
      "source_type": "government",
      "verification": "verified"
    },
    {
      "url": "https://jlarc.virginia.gov/pdfs/reports/Rpt598-2.pdf",
      "pinpoint": "Summary, p.viii (\"Changes to the state’s data center sales tax exemption could address some policy concerns related to the industry\")",
      "quote": null,
      "quote_chars": 734,
      "title": "JLARC Report 598, \"Data Centers in Virginia\" (Commission draft)",
      "source_type": "government",
      "verification": "verified"
    },
    {
      "url": "https://www.multistate.us/insider/2026/3/30/virginia-lawmakers-pass-15-data-center-bills-as-tax-exemption-fight-looms",
      "pinpoint": "\"Tax Exemption Battle Dominates Budget Negotiations\" section",
      "quote": null,
      "quote_chars": 218,
      "title": "MultiState Insider, \"Virginia Lawmakers Pass 15 Data Center Bills as Tax Exemption Fight Looms\"",
      "source_type": "company",
      "verification": "verified"
    },
    {
      "url": "https://www.multistate.us/insider/2026/3/30/virginia-lawmakers-pass-15-data-center-bills-as-tax-exemption-fight-looms",
      "pinpoint": "\"Tax Exemption Battle Dominates Budget Negotiations\" section",
      "quote": null,
      "quote_chars": 251,
      "title": "MultiState Insider, \"Virginia Lawmakers Pass 15 Data Center Bills as Tax Exemption Fight Looms\"",
      "source_type": "company",
      "verification": "verified"
    },
    {
      "url": "https://www.multistate.us/insider/2026/3/30/virginia-lawmakers-pass-15-data-center-bills-as-tax-exemption-fight-looms",
      "pinpoint": "\"Tax Exemption Battle Dominates Budget Negotiations\" section",
      "quote": null,
      "quote_chars": 365,
      "title": "MultiState Insider, \"Virginia Lawmakers Pass 15 Data Center Bills as Tax Exemption Fight Looms\"",
      "source_type": "company",
      "verification": "verified"
    }
  ],
  "access": "Recorded term fields, and quotes past the first 3, are in the $99 state pass or the $199 all-states pass. Identity, citation, every source document and every pinpoint are open. https://verifiedatlas.com/pricing/"
}