HB 2273

Abstract

Sales and use tax exemption for data centers. Reduces to four new jobs, for purposes of qualifying for the sales and use tax exemption for data centers, the job creation requirement for a data center in a distressed locality. Under current law, such data centers must create at least 25 new jobs. The bill lowers the amount of investment needed to qualify for the exemption from $150 million to $1.9 million for data centers that qualify for the reduced jobs requirement. The bill also redefines what criteria are used to identify a distressed locality such that a locality qualifies as distressed if it has an unemployment rate that is greater than the statewide unemployment rate and it also has a poverty rate that exceeds the statewide poverty rate. The bill requires all data centers claiming the exemption to submit an annual report detailing certain information to the Virginia Economic Development Partnership Authority (the Authority). Finally, the requires the Department of Taxation (the Department), in collaboration with the Authority to publish a biennial report on the exemption. Such report by the Department shall not include any unaggregated or other information that could be used to identify a business or individual.

Sales and use tax exemption for data centers. Eliminates, for purposes of qualifying for the sales and use taxexemption for data centers, the job creation requirement for a datacenter in a distressed locality. Under current law, such data centersmust create at least 25 new jobs. The bill also redefines what criteriaare used to identify a distressed locality such that a locality qualifiesas distressed if it has an unemployment rate that is greater thanthe statewide unemployment rate and it also has a poverty rate thatexceeds the statewide poverty rate. The bill requires all data centersclaiming the exemption to report certain information to the VirginiaEconomic Development Partnership Authority to be published annually.