Data Center Equipment Sales and Use Tax Exemptions

Virginia Department of Taxation

Program Type:

Tax Incentive

Eligible Geography:

Virginia

Summary:

Data center equipment at qualified data centers is exempt from sales text.

To qualify for the exemption, the data center and its tenants must be:
-Located in Virginia;
-Result in a $150 million capital investment;
-Create at least 50 new jobs that pay at least 1.5 times the average salary in the locality (25 new jobs, if the location is an enterprise zone or a locality whose average unemployment is 150% the statewide unemployment average.)
-Enter into a memorandum of understanding with the Virginia Economic Development Partnership (VEDP).

Eligible Recipients:

For-Profit Business

Eligible Recipients Detail:

Qualified Data Centers.

Eligible Purpose:

Broadband Enabled Devices (General); Broadband-Related Industry

Eligible Purpose Detail:

Computer hardware and software purchased for use in a data center is not subject to sales tax, if the data center meets certain requirements.

Other Eligibility Criteria:

Funding Match/Terms:

For additional information, please contact Virginia Department of Taxation.