Data Centers Tax Breaks
FILE - Cars drive past data centers that house computer servers and hardware required to support modern internet use, such as artificial intelligence, in Ashburn, Virginia, July 16, 2023.
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Virginia senators are pushing to curtail a 5.3% tax break for data centers. The policy proposal comes while many communities are trying to defeat data center projects in zoning proceedings and some states are reconsidering their sales tax exemptions. It is not guaranteed that Virginia will end up taxing data centers. The governor and other high-ranking lawmakers say they are concerned the tax would end industry investment in the state. Still, lawmakers' campaign to end such tax exemptions has stirred bipartisan support. Officials negotiating the tax policy have until Saturday to agree on and pass a budget.