Library / Incentive program
Virginia data center retail sales and use tax exemption
OnboardedVAStatutory exemption for computer equipment and enabling software purchased for use in a qualifying data center. Commonly reported thresholds: at least $150M of new capital investment and 50 new jobs paying at least 150% of the prevailing average wage (reduced job counts in distressed localities). Verify current thresholds, sunset and MOU terms with VEDP and the Department of Taxation at onboarding. Virginia reuses the statutory data center definition for its generator air rules.
Sources (1)
| Document | Version | Effective | Notes |
|---|---|---|---|
| Va. Code § 58.1-609.3(18) — data center sales and use tax exemption; VEDP memorandum of understanding | — | — | Thresholds and job/wage tests as commonly reported; confirm against the current statute text and the MOU form. |
Requirement classes (4)
Triggers are evaluated against project inputs; durations are typical working days.
| Code | Title | Gate | Category | Asset classes | Trigger | Days | Veto | Predecessors | Source / clause |
|---|---|---|---|---|---|---|---|---|---|
| INC-MOU | Eligibility certification and MOU with VEDP (investment and job thresholds) Memorandum of understanding committing to the capital investment and job thresholds (commonly $150M and 50 jobs at 150% of prevailing wage; verify). The MOU fixes the performance dates and the measuring locality; sign it before equipment purchases that need the exemption. Evidence: Executed MOU with VEDP; locality endorsement; investment and job commitment schedule. | Entitlement | Incentive | Data center | Applies when an incentive program is listed for the project | 60 | LC-PREAPP | Va. Code § 58.1-609.3(18) — data center sales and use tax exemption; VEDP memorandum of understanding Va. Code § 58.1-609.3(18) | |
| INC-CERT | Exemption certificate from the Department of Taxation Exemption certificate issued to the owner (and extended to tenants/contractors as the statute allows) so qualifying equipment purchases are made tax-free rather than refunded. Evidence: Issued exemption certificate; list of parties authorized to use it. | Construction | Incentive | Data center | Applies when an incentive program is listed for the project | 20 | INC-MOU | Va. Code § 58.1-609.3(18) — data center sales and use tax exemption; VEDP memorandum of understanding — | |
| INC-CLAWBACK | Clawback and performance-shortfall tracking Tracking of the conditions under which exempted tax becomes repayable (missed investment or job thresholds by the MOU dates, change of use). Flags if tenant delivery slips push jobs past the performance date. Handed to operations at energization. Evidence: Clawback terms summary; shortfall scenario memo; owner of the obligation named. | Energization / occupancy | Incentive | Data center | Applies when an incentive program is listed for the project | 5 | INC-REPORT, TEN-MILESTONES | Va. Code § 58.1-609.3(18) — data center sales and use tax exemption; VEDP memorandum of understanding — | |
| INC-REPORT | Annual investment and job reporting setup Reporting cadence to VEDP/Department of Taxation on cumulative capital investment and jobs against the MOU schedule. Set up before energization and hand to operations with the obligation tracker. Evidence: Reporting calendar; first annual report filed; investment tracking ledger. | Energization / occupancy | Incentive | Data center | Applies when an incentive program is listed for the project | 10 | INC-CERT | Va. Code § 58.1-609.3(18) — data center sales and use tax exemption; VEDP memorandum of understanding — |