Cloud Computing Cluster Infrastructure Grant Fund; created.
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SB 1522 — Cloud Computing Cluster Infrastructure Grant Fund; created.
Last action — Acts of Assembly Chapter text (CHAP0671)
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House of Delegates
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 20, 2023. Enacted.
Signed by Governor Glenn Youngkin (Republican) on March 26, 2023.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Failed a recorded vote
Failed 9 recorded votes so far — a real headwind.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Bill Text
What changed in the latest version
393 added · 371 removedPlain-language change summary
The amendments to SB 1522 create a new section in Virginia's laws that specifically addresses sales tax exemptions for data centers and cloud computing operations. This change aims to encourage businesses in the tech industry to invest in Virginia by offering them relief from certain taxes. By providing these exemptions, the state hopes to attract more data centers, which can lead to job creation and economic growth in the region.
SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2023 SESSION CHAPTER E671 An Act to amend and reenact § 58.1-609.3 of the Code of Virginia and to amend the Code of Virginia by adding in Title 59.1 a chapter numbered 22.20, consisting of a section numbered 59.1-284.41, relating to data centers and cloud computing;
grant fund.eredfund. 59.1-284.R1, O [S 1522] L Approved L Be it enacted by the General Assembly of Virginia:
E[S 1.1522] Approved March 26, 2023 Be it enacted by the General Assembly of Virginia:
That § 58.1-609.3 of the Code of Virginia is amended and reenacted and that the Code of D numbered 59.1-284.41, as follows:Title 59.1 a chapter numbered 22.20, consisting of a section § 58.1-609.3.
Commercial and industrial exemptions.
The tax imposed by this chapter or pursuant to the authority granted in §§ 58.1-605 and 58.1-606 shall not apply to the following:
PersonalThat property§ purchased58.1-609.3 byof athe contractorCode whichof Virginia is usedamended solelyand inreenacted anotherand statethat orthe inCode aof foreignVirginia country,is whichamended could be purchased by suchadding contractor for such use free from sales tax in suchTitle other59.1 statea orchapter foreignnumbered country,22.20, andconsisting whichof isa storedsection temporarilynumbered in59.1-284.41, Virginiaas pendingfollows: shipment to such Btate or country.
5§ tangible58.1-609.3. personal property for resale where such industrial materials either enter into the production of orf become a component part of the finished product;
Commercial and industrial exemptions.
The tax imposed by this chapter or pursuant to the authority granted in §§ 58.1-605 and 58.1-606 sha1.
Personal property purchased by a contractor which is used solely in another state or in a foreign country, which could be purchased by such contractor for such use free from sales tax in such other state or foreign country, and which is stored temporarily in Virginia pending shipment to such state or country.
2.
(i) Industrial materials for future processing, manufacturing, refining, or conversion into articles of tangible personal property for resale where such industrial materials either enter into the production of or become a component part of the finished product;
or (v) equipment, printing or supplies used directly to produce a publication described in subdivision 3 of § 58.1-609.6 whether it is ultimately sold at retail or replacementsfor thereof,resale shall be exempt if the preponderance of their use is directly in processing, manufacturing, refining, mining or convertingdistribution productsat forno salecost. or resale.
Machinery, tools and equipment, or repair parts therefor or replacements thereof, shall be exempt if the preponderance of their use is directly in processing, manufacturing, refining, mining or converting products for sale or resale.
The exemption for machinery, tools, and equipment used to generate energy derived from sunlight or wind shall expire Jun3.June 30, 2027.
3.
or tangible personal property used directly in the building, conversion or repair of the ships or vessels covered by this subdivision.
Notwithstanding the provisions of subdivision 20 of § 58.1-609.10, all tangible personal property sold or leased to an airline operating in intrastate, interstate or foreign commerce as a common carrier providing scheduled air service on a continuing basis to one or more Virginia airports at least one day per7.per week, for use or consumption by such airline directly in the rendition of its common carrier service.
Meals7. furnished by restaurants or food service operators to employees as a part of wages.r service.
Meals furnished by restaurants or food service operators to employees as a part of wages.
Tangible personal property including machinery and tools, repair parts or replacements thereof, of 7 and supplies and materials used directly in maintaining and preparing textile products for rental or leasing by an industrial processor engaged in the commercial leasing or renting of laundered textile of 7 products.
Computer equipment purchased or leased on or before June 30, 2011, used in data centers located in a Virginia locality having an unemployment rate above 4.9 percent for the calendar quarter ending November 2007, for the processing, storage, retrieval, or communication of data, including but not limited to servers, routers, connections, and other enabling hardware when part of a new investment of at least $75 million in such exempt property, when such investment results in the creation of at least 100 new jobs paying at least twice the prevailing average wage in that locality, so long as such investment was made in accordance with a memorandum of understanding with the Virginia Economic Development Partnership Authority entered into or amended between January 1, 2008, and December 31, 2008.
The of 7 exemption shall not apply to any computer software sold separately from the computer equipment, nor shall it apply to general building improvements or fixtures.
E 18.
Beginning July 1, 2010, and ending June 30, 2035, except as provided in subdivision 19, computer equipment or enabling software purchased or leased for the processing, storage, retrieval, or communication of data, including but not limited to servers, routers, connections, and other enRblingenabling of 7 hardware, including chillers and backup generators used or to be used in the operation of the equipment exempted in this paragraph, provided that such computer equipment or enabling software is purchased or leased for use in a data center, which includes any data center facilities located in the same locality as the data center that are under common ownership or affiliation of the data center operator, that (i) is located in a Virginia locality;
and (iii) results in the creation on or after July 1, 2009, of at least 50 new jobs by the data center operator and the tenants of the data center, collectively, associated with the Eperationoperation or maintenance of the data center provided that such jobs pay at least one and one-half times the prevailing average wage in that locality.
Additionally, the qualifyrequirement forof thea reduced$150 jobsmillion requirement.estmentcapital investment shall be reduced to $70 million for data centers that Thisqualify exemptionfor applies to the datareduced centerjobs operatorrequirement. and the tenants of the data center if they collectively meet the requirements listed in this section.
PriorThis toexemption claimingapplies suchto exemption, any qualifying person claiming the exemption, including a data center operator on behalf of itself Snd its tenants, must enter into a memorandum of understanding with the Virginia Economic Development 1 Partnership Authority that at a minimum provides the details for determining the amount of capi2al investment made and the numbertenants of new jobs created, the timeline for achieving the capital inveEtment and new job goals, the repayment obligations should those goals not be achieved, and any conditRons under which repayment by the qualifying data center orif datathey centercollectively tenantmeet claiming the exemptionrequirements maylisted bein required.this section.
InPrior addition,to claiming such exemption, any qualifying person claiming the exemptionexemption, shallincluding applya todata center operator on behalf of itself and its tenants, must enter into a memorandum of understanding with the Virginia Economic Development Partnership Authority that at a minimum provides the details for determining the amount of capital investment made and the number of new jobs created, the timeline for achieving the capital investment and new job goals, the repayment obligations should those goals not be achieved, and any suchconditions computerunder equipmentwhich orrepayment enablingby softwarethe purchasedqualifying data center or leaseddata incenter tenant claiming the initialexemption investment.may be required.
In addition, the exemption shall apply to any such computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the initial investment.
(2) From and after July 1, 2023, any locality that has (i) an annual unemployment rate for the most recent calendar year for which such data is available that is greater than the final statewide average unemployment rate for that calendar year and (ii) a poverty rate for the most recent calendar year foreragefor which such data is available that exceeds the statewide average poverty rate for that year.
The annual report shall be submitted by the data center operator in a format prescribed by the Authority shall share all information collected with the Department.onomic Development Partnership The Department, in collaboration with the Virginia Economic Development Partnership Authority,Authority. shall publish a biennial report on the exemption that shall include aggregate information on qualifying expenses claimed under this exemption, the total value of the tax benefit, a return on investment analysis that includes direct and indirect jobs created by data center investment, state and local tax revenues generated, and any other information the Department and the Virginia Economic Development Partnership Authority deem appropriate to demonstrate the costs and benefits of the exemption.
The Virginia Economic Development Partnership Authority shall share all information collected with the Department.
The Department, in collaboration with the Virginia Economic Development Partnership Authority, shall publish a biennial report on the exemption that shall include aggregate information on qualifying expenses claimed under this exemption, the total value of the tax benefit, a return on investment analysis that includes direct and indirect jobs created by data center investment, state and local tax revenues generated, and any other information the Department and the Virginia Economic Development Partnership Authority deem appropriate to demonstrate the costs and benefits of the exemption.
The Department shall submit the report to the Chairmen of the Senate Committee on Finance and Appropriations and the House Committees on Appropriations and Finance.
The Virginia Economic Development Partnership Authority may publish on its website and distribute annual information indicating the job creation and ranges of capital of 7 investments made by a data center operator and, if applicable, its participating tenants, in a format to be developed in consultation with data center operators.
of 7 b.
"Capital investment" means an investment by or on behalf of a qualified company on or after January 1, 2023, but prior to July 1, 2040, in real property, tangible personal property, or both, at a of 7 facility that is properly chargeable to a capital account or would be so chargeable with a proper election.
E "Construction cost" means any capital investment, except for the purchase of land, by a qualified company on or after January 1, 2023, in real or tangible personal property to develop or support a data center in a locality identified in a memorandum of understanding.
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"Construction cost" inclRdesincludes infrastructure costs.
"Facility" means the one or more buildings, group of buildings, and ancillary facilities and equipment that are located in a locality or localities identified in a memorandum of understanding and that are owned, occupied, or otherwise operated by or for the qualified company for data center and cloud computing cluster operations.
Lof 7 "Grant" means a grant from the Fund awarded to a qualified company that is intended to pay oEor reimburse the qualified company for (i) infrastructure costs related to the construction and support of facilities and (ii) costs for workforce development, recruiting, and training.
D "Infrastructure costs" includes the costs related to fiber, water, wastewater, and stormwater facilities;
and site clearing, grading, and other imp"Locality"improvements meansto asupport county or city in the Commonwealthconstruction in which a company makes an eligible investment in a facility and createsdevelopment new full-time jobs, that is identified in a memorandum of understanding, and that has entered into a performancefacility. agreement.
"Local"Locality" match" means a county or city in the fundsCommonwealth committedin bywhich a localitycompany identifiedmakes an eligible investment in a memorandumfacility ofand understaSdingcreates tonew afull-time qualifiedjobs, companythat relatedis toidentified thein constructiona memorandum of understanding, and operationthat ofhas entered into a facility.performance agreement.
The"Local localmatch" match1shallmeans bethe atfunds leastcommitted twiceby thea amountlocality providedidentified fromin thea Fundmemorandum of understanding to thea qualified company related to the constr2ctionconstruction of, and creationoperation of new full-time jobs at, the facility in such locality, as set forth in a perEormancefacility. agreement.
ExpendituresThe bylocal amatch localityshall thatbe theat Secretaryleast hastwice certifiedthe asamount infrastructureprovided costsfrom Rncurredthe byFund to the localityqualified atcompany related to the requestconstruction of, and creation of new full-time jobs at, the qualifiedfacility companyin maysuch belocality, countedas towardset theforth localin matcha obligation.performance agreement.
"MEIExpenditures Commission"by means the MEI Project Approval Commission established pursuant to Chapter 47 (§ "Memorandum of understanding" means a memorandumlocality ofthat understandingthe enteredSecretary intohas oncertified oras afterinfrastructure Januarycosts 1,incurred 2023,by between a qualified company, the Commonwealth,locality andat VEDP that sets forth (i) the grantrequest amountof that the qualified company shallmay be eligiblecounted totoward receivethe forlocal eachmatch newobligation. full-time job created and each $1 million of capital investment in construction costs made;
"MEI Commission" means the MEI Project Approval Commission established pursuant to Chapter 47 (§ 30-309 et seq.) of Title 30.
"Memorandum of understanding" means a memorandum of understanding entered into on or after January 1, 2023, between a qualified company, the Commonwealth, and VEDP that sets forth (i) the grant amount that the qualified company shall be eligible to receive for each new full-time job created and each $1 million of capital investment in construction costs made;
"New full-time jobs" means job positions created on or after January 1, 2023, but prior to July 1, 2040, in which the employee of a qualified company works at a facility, for which the average annual,annual wage is at least one and one-half times the prevailing wage of the locality where the job is located, and for which the qualified company provides standard fringe benefits.
A position created when a job function is shifted from an existing location in the Commonwealth to a new facility shall qualify as a new full-time job if the qualified company certifies that it has hired a new employee or contractor to fill substantially the same job at the existing location as that performed by the transferred position.
Such performance agreement may also include whichcommitments therelated partiesto agree.cceleratedaccelerated permitting, property tax classifications, and other such issues to "Performance date" means the date set forth in a memorandum of understanding by which capital of 7 investment and new full-time job creation targets shall be met in order to qualify for grants from the Fund.parties agree.
"Performance date" means the date set forth in a memorandum of understanding by which capital investment and new full-time job creation targets shall be met in order to qualify for grants from the Fund.
Approval by the General Assembly in a general appropriation act, including approval of the specific grant amount that the company shall receive for each new full-time job created and each $1 of 7 million of capital investment in construction costs made, as well as the total, aggregate amount of grants from the Fund that the company shall be eligible to receive and the date of endorsement by the MEI Commission.
(ii) the aggregate number of new full-time jobs created and maintained as of 7the last day of the calendar year that immediately precedes the date of the application;
The E application and evidence shall be filed with the Secretary in person, by mail, or as otherwise agreed upon in the memorandum of understanding, by no later than April 1 of each year following the enRend of the calendar year upon which the evidence set forth is based.
Failure to meet the filing deadline shall governresult thein datea deferral of thea filingscheduled determination.yment.grant payment.
For filings by mail, the postmark cancellatiOncancellation shall F.govern the date of the filing determination.
WithinF. 60 days of receiving the application and evidence pursuant to subsection E, the Secretary shall certify to the Comptroller and the qualified company the verification of the information Lontained in the application and the resulting amount of the grant payments to which the grant eligible company may be entitled for payment.
SuchWithin grant60 paymentsdays of receiving the application and evidence pursuant to subsection E, the Secretary shall becertify madeto annuallythe byComptroller checkand orthe electronicqualified Ecompany submissionthe verification of suchthe application,information ascontained provided in the memorandumapplication and the resulting amount of understanding.the grant payments to which the grant-eligible company may be entitled for payment.
TheSuch ComptrollerDggrant thepayments shall notbe drawmade anyannually warrantsby tocheck issue checks or electronic paymentspayment forissued grantby paymentsthe underState thisTreasurer chapteron withoutwarrant aof specificthe appropriationComptroller forin each fiscal year following the same.submission of such application, as provided in the memorandum of understanding.
The Comptroller shall not draw any warrants to issue checks or electronic payments for grant payments under this chapter without a specific appropriation for the same.
As a condition for the receipt of a grant payment, a qualified company shall make available for of 7 inspection to the Secretary, upon request, documents relevant and applicable to determining whether the qualified company has met the requirements for the receipt of a grant payment as set forth in this chapter and subject to the memorandum of understanding.
Copies of the performance agreement and asa certification by each locality subject to a performance agreement and the qualified company thaSthat the provisions of such agreement have been fulfilled shall also be provided to the Secretary.
1 2.
That upon the signing of a memorandum of understanding, as defined in § 59.1-284.41 of the 2 Code of Virginia, as created by this act, the Virginia Economic Development Partnership EAuthority (VEDP) shall hire a full-time project coordinator to assist each qualified company, as defined in § 59.1-284.41 of the Code of Virginia, as created by this act, with managing projects with the Commonwealth and its agencies and local government entities.
The costs for company.dinatorthe coordinator shall count toward the aggregate cap of grants that may be paid to the qualified company.
Show all 69 changed rows (29 more)
View plain text versions (4)
- CHAP0671 View text Current pdf March 26, 2023
- SB1522ER View text pdf March 07, 2023
- Committee Substitute Committee substitute printed 23106561D-H1 pdf February 13, 2023
- Presented and ordered printed 23102446D View text pdf January 20, 2023
Action History
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Acts of Assembly Chapter text (CHAP0671)
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Approved by Governor-Chapter 671 (effective 7/1/23)
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Governor's Action Deadline 11:59 p.m., March 27, 2023
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Enrolled Bill Communicated to Governor on March 13, 2023
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Signed by Speaker
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Signed by President
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Impact statement from DPB (SB1522ER)
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Bill text as passed Senate and House (SB1522ER)
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Enrolled
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VOTE: Adoption (78-Y 14-N 1-A)
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Conference report agreed to by House (78-Y 14-N 1-A)
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Conference report agreed to by Senate (36-Y 4-N)
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Amended by conference committee
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Delegates: Knight, Austin, Torian
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Conferees appointed by House
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Senators: Barker, McPike, Pillion
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Conferees appointed by Senate
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Senate acceded to request (40-Y 0-N)
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House requested conference committee
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House insisted on substitute with amendment
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House substitute with amendment rejected by Senate (0-Y 40-N)
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VOTE: Passage (85-Y 10-N 1-A)
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Passed House with substitute with amendment (85-Y 10-N 1-A)
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Engrossed by House - committee substitute with amendment SB1522H1
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Amendment by Delegate Knight agreed to
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Committee substitute agreed to 23106561D-H1
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Read third time
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House committee, floor amendments and substitutes offered
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Read second time
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Impact statement from DPB (SB1522H1)
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Committee substitute printed 23106561D-H1
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Reported from Appropriations with substitute (21-Y 0-N)
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Assigned App. sub: Commerce Agriculture & Natural Resources
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Referred to Committee on Appropriations
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Read first time
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Placed on Calendar
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Read third time and passed Senate (38-Y 1-N)
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Read second time and engrossed
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Constitutional reading dispensed (40-Y 0-N)
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Reported from Finance and Appropriations (14-Y 1-N)
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Impact statement from DPB (SB1522)
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Referred to Committee on Finance and Appropriations
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Presented and ordered printed 23102446D
Sponsors
- George L. Barker · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 147 not signed on
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (147)
147 members have not signed on to this bill.
Show all 147 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
Roll call published as PDF — view source.
Roll call published as PDF — view source.
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Roll call published as PDF — view source.
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Roll call published as PDF — view source.
Roll call published as PDF — view source.
Roll call published as PDF — view source.
Roll call published as PDF — view source.
Subjects
Frequently asked questions
- Who sponsors SB 1522?
- SB 1522 is sponsored by Barker, George L..
- What is the current status of SB 1522?
- This bill has been enacted into law. Introduced January 20, 2023. Enacted.
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