Data Center State Tax Incentives Series: VIRGINIA

Virginia Tax Incentives

HISTORY

In 2009, the Virginia General Assembly unanimously passed into law data center tax incentive legislation that took effect in July of 2010. The legislation focused on sales and use tax incentives for computer equipment purchased or leased for use in a qualifying data center between July 2010 and June 30 2020.  Qualifying data centers required a minimum investment of $150 Million and the creation of at least 50 jobs.

This initial legislation helped the state to secure a massive data center investment from Microsoft in 2010, beating out North Carolina. Over the past couple of years, the data center focus has shifted to North Carolina, causing Virginia to revisit the legislation in place in order to bolster its positioning as an attractive data center destination.

HIGHLIGHTS

The Virginia General Assembly passed three separate bills  that went into effect in July of 2012 that are aimed at strengthening the state’s competitive advantages in the data center site selection process.  The three bills are as follows:

HB 216 | SB 112

  • Expands the state’s current data center sales and use tax exemption for computer equipment or software to also include the data center tenants in addition to the data center owner/operator
  • This expansion also includes jobs created by the data center owner/operator and tenants

HB 1013 | SB 226

  • Extends exemptions from Virginia’s capital gains tax for investors in qualified technology start-ups. The law exempts qualified investors from paying 100% of the capital gains tax for three years
  • This exemption was set to expire June 30, 2013
  • This exemption has been extended and now will expire June 30, 2015

HB 551 | SB 238

  • Extends the Telework Expense Tax Credit for employers through December 31, 2016
  • This bill provides companies with tax credits for costs associated with the building or expanding of a telework program, which is a program to have a company’s employees work from home

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For complete details regarding data center tax incentive legislation in the state of Virginia, or for tax incentive information on other states, please contact Mission Critical Consultants. Mission Critical Consultants is a member of the Best Data Sites Alliance™

 

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About Five 9s Digital, LLC

Five 9s Digital is a data center real estate company offering data center development, investment sales, real estate advisory, and colocation and wholesale data center selection and procurement services. Five 9s Digital has been involved in the development and ownership of multiple mission critical facilities from single user build-to-suit facilities to multi-tenant data centers. Five 9s Digital brings a wealth of experience, background and expertise in providing solutions to the data center arena. Due to the specific and yet evolving requirements of mission critical end users in today’s world, Five 9s Digital is able to offer real solutions, real facilities, and real choices due its extensive and up-to-date knowledge base. Five 9s Digital is a Best Data Sites Certification Alliance™ member.
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