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End Data Center Tax Subsidies

  • Apr 18
  • 2 min read

Updated: Apr 26

REMOVE THE DATA CENTER TAX SUBSIDY

FROM THE UPCOMING BUDGET BEFORE THE VOTE!


 Take action right now to end Virginia’s $1.9 billion Data Center Tax Break. Tell your Legislators and the Governor to End the Data Center Tax Subsidy. Rather than funding some of the wealthiest companies on earth, shouldn’t we collect that revenue and invest it back into our communities?   Use the link below to access the Piedmont Environmental Council’s information, including talking points to use when you contact Governor Spanberger and your Legislators asap.

 



This action needs to be done as soon as possible, before the General Assembly reconvenes on Thursday, April 23rd. It's easy to do!


Let Your Legislators and the Governor Know: It’s Time to End the Big Tax Break for Data Centers


Send an email before legislators reconvene and finalize the state budget on April 23. 


Should Virginia continue to give a $1.9 billion sales tax break to data centers and the wealthiest companies on earth? Or should Virginia collect that revenue and invest it back into communities? This is the question at the heart of the Virginia General Assembly's budget impasse. The Senate's proposed state budget would phase out the sales tax break, while the House version keeps it in place.


Since 2008, this tax break has ballooned from $1.6 million to a staggering $1.9 billion annually — that's billion, with a B — roughly 6% of our total state revenue. While the incentive may have once served a purpose, Virginia is now the data center capital of the world and no longer needs the massive giveaway to attract companies like Amazon, Google, and Microsoft. In fact, we can no longer afford it. Our power grid is overwhelmed by the data centers already in operation, and billions of dollars of transmission line projects are planned to meet the exploding energy needs of data centers in the pipeline. 


By eliminating or phasing out this exemption, the Senate's proposed budget would redirect new revenue toward important needs in our communities, such as: Funding critical water and wastewater infrastructure; helping localities modernize aging school buildings; expanding access to hunger relief programs; improving transportation and transit across the Commonwealth; and providing direct taxpayer relief.


Your delegate, senator, and Governor Spanberger need to hear from you today! Legislators went home without a budget agreement, but must reach one by April 23. If you are able to, we encourage you to add your own words to the email template below and explain why you are concerned about the impacts of data centers.




 

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