Virginia Data Center Exemption

H.B. 216 clarifies that the sales and use tax exemption for certain computer equipment or enabling software purchased or leased for use in a qualifying data center (under Va. Code Ann. § 58.1-609.3(18) ) applies to the data center operator and the tenants of the data center if they collectively meet the exemption's requirements. This legislation is effective for purchases made on or after July 1, 2012, for use in a data center that: (1) meets the requirements of the exemption on or after January 1, 2009, and (2) enters into a memorandum of understanding on or after January 1, 2009, with the Virginia Economic Development Partnership Authority prior to claiming the exemption.