Data centers; sales and use tax exemption, identifying a 'distressed locality.' (SB1423)

Introduced By

Sen. Jeremy McPike (D-Dale City) with support from co-patron Sen. Todd E. Pillion (R-Abingdon)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Sales and use tax exemption for data centers. Reduces the job creation requirement to qualify for the sales and use tax exemption for data centers in a distressed locality from 25 to 10 jobs and reduces the required capital investment from $150 million to $70 million for such data centers. The bill also redefines what criteria are used to identify a distressed locality; under the bill, a locality qualifies as distressed if it has an unemployment rate that is greater than the statewide unemployment rate and a poverty rate that exceeds the statewide poverty rate. The bill requires all data centers claiming the exemption to report certain information to the Virginia Economic Development Partnership Authority (the Authority) and the Department of Taxation, in collaboration with the Authority, to aggregate and publish such information biennially. This bill is identical to HB 2273. Read the Bill »


03/25/2021: signed by governor


01/13/2021Presented and ordered printed 21102264D
01/13/2021Referred to Committee on Finance and Appropriations
01/16/2021Impact statement from TAX (SB1423)
01/27/2021Senate committee, floor amendments and substitutes offered
01/27/2021Reported from Finance and Appropriations with substitute (15-Y 0-N) (see vote tally)
01/27/2021Committee substitute printed 21103693D-S1
01/28/2021Constitutional reading dispensed (38-Y 0-N) (see vote tally)
01/29/2021Senate committee, floor amendments and substitutes offered
01/29/2021Floor substitute printed 21104031D-S2 (McPike)
01/29/2021Read second time
01/29/2021Reading of substitute waived
01/29/2021Committee substitute rejected 21103693D-S1
01/29/2021Substitute by Senator McPike agreed to 21104031D-S2
01/29/2021Engrossed by Senate - floor substitute SB1423S2
02/01/2021Read third time and passed Senate (38-Y 0-N) (see vote tally)
02/01/2021Reconsideration of passage agreed to by Senate (39-Y 0-N) (see vote tally)
02/01/2021Passed Senate (39-Y 0-N) (see vote tally)
02/05/2021Placed on Calendar
02/05/2021Read first time
02/05/2021Referred to Committee on Finance
02/08/2021Continued to Special Session 1 in Finance
02/08/2021Impact statement from TAX (SB1423S2)
02/09/2021Assigned Finance sub: Subcommittee #1
02/12/2021House subcommittee amendments and substitutes offered
02/12/2021Subcommittee recommends reporting with substitute (10-Y 0-N)
02/15/2021Reported from Finance with substitute (21-Y 1-N) (see vote tally)
02/15/2021Committee substitute printed 21200157D-H1
02/17/2021Read second time
02/18/2021Read third time
02/18/2021Committee substitute agreed to 21200157D-H1
02/18/2021Engrossed by House - committee substitute SB1423H1
02/18/2021Passed House with substitute (92-Y 8-N)
02/18/2021VOTE: Passage (92-Y 8-N) (see vote tally)
02/19/2021House substitute rejected by Senate (0-Y 37-N)
02/19/2021House insisted on substitute
02/19/2021House requested conference committee
02/19/2021Senate acceded to request (37-Y 0-N)
02/19/2021Conferees appointed by Senate
02/19/2021Senators: McPike, Ebbin, Ruff
02/19/2021Conferees appointed by House
02/19/2021Delegates: Morefield, Keam, Willett
02/25/2021C Amended by conference committee
02/25/2021Conference substitute printed 21200682D-S3
02/25/2021Conference report agreed to by House (87-Y 11-N)
02/25/2021VOTE: Agreed To (87-Y 11-N)
02/27/2021Conference report agreed to by Senate (39-Y 0-N)
03/09/2021Bill text as passed Senate and House (SB1423ER)
03/09/2021Signed by President
03/11/2021Impact statement from TAX (SB1423ER)
03/11/2021Signed by Speaker
03/15/2021Enrolled Bill Communicated to Governor on March 15, 2021
03/15/2021G Governor's Action Deadline 11:59 p.m., March 31, 2021
03/25/2021G Approved by Governor-Chapter 368 (effective 7/1/21)
03/25/2021G Acts of Assembly Chapter text (CHAP0368)