Virginia Impasse Over Data Center Tax Break Punts Budget Talks

March 16, 2026, 2:36 PM UTC

Virginia lawmakers are set to return for another legislative session starting April 23 following a state budget stalemate over a lucrative sales tax break for data centers.

Gov. Abigail Spanberger (D) must convene a special session for considering the budget bill after the Democrat-controlled legislature wrapped up its 2026 regular session March 14 without reaching a deal.

One of the main points of contention in budget negotiations is the state’s sales tax exemption for data centers. The Senate proposed ending the carveout, while the House of Delegates sought to extend the program but add restrictions.

Virginia is one ...

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