Data centers; sales and use tax exemption, criteria, report. (HB2273)

Introduced By

Del. Will Morefield (R-North Tazewell) with support from co-patrons Del. Mark Keam (D-Vienna), Del. Terry Kilgore (R-Gate City), and Del. Rodney Willett (D-Henrico)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


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. Read the Bill »


03/03/2021: Awaiting a Vote in the Finance and Appropriations Committee


01/14/2021Presented and ordered printed 21102531D
01/14/2021Referred to Committee on Finance
01/16/2021Assigned Finance sub: Subcommittee #1
01/28/2021House subcommittee amendments and substitutes offered
01/28/2021Subcommittee recommends reporting with substitute (10-Y 0-N)
01/31/2021Impact statement from TAX (HB2273)
02/01/2021House committee, floor amendments and substitutes offered
02/01/2021Reported from Finance with substitute (21-Y 1-N) (see vote tally)
02/01/2021Committee substitute printed 21104034D-H1
02/02/2021Read first time
02/03/2021Read second time
02/03/2021Committee substitute agreed to 21104034D-H1
02/03/2021Engrossed by House - committee substitute HB2273H1
02/04/2021Read third time and passed House (91-Y 9-N)
02/04/2021VOTE: Passage (91-Y 9-N) (see vote tally)
02/05/2021Constitutional reading dispensed
02/05/2021Referred to Committee on Finance and Appropriations
02/05/2021Continued to 2021 Sp. Sess. 1 in Finance and Appropriations (16-Y 0-N) (see vote tally)
02/16/2021Senate committee, floor amendments and substitutes offered
02/16/2021Reported from Finance and Appropriations with substitute (13-Y 0-N) (see vote tally)
02/16/2021Committee substitute printed 21200247D-S1
02/16/2021Constitutional reading dispensed (37-Y 0-N) (see vote tally)
02/17/2021Read third time
02/17/2021Reading of substitute waived
02/17/2021Committee substitute agreed to 21200247D-S1
02/17/2021Engrossed by Senate - committee substitute HB2273S1
02/17/2021Passed Senate with substitute (39-Y 0-N) (see vote tally)
02/18/2021VOTE: Adoption (0-Y 100-N) (see vote tally)
02/18/2021Placed on Calendar
02/18/2021Senate substitute rejected by House 21200446D-S1 (0-Y 100-N)
02/18/2021VOTE: REJECTED (0-Y 100-N) (see vote tally)
02/19/2021Senate insisted on substitute (37-Y 0-N)
02/19/2021Senate requested conference committee
02/19/2021House acceded to request
02/19/2021Conferees appointed by House
02/19/2021Delegates: Morefield, Keam, Willett
02/19/2021Conferees appointed by Senate
02/19/2021Senators: McPike, Ebbin, Ruff
02/25/2021C Amended by conference committee
02/25/2021Conference substitute printed 21200579D-H2
02/25/2021Conference report agreed to by House (90-Y 8-N)
02/25/2021VOTE: Agreed To (90-Y 8-N)
02/27/2021Conference report agreed to by Senate (39-Y 0-N)

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