Budget agreement finally reached

Budget agreement finally reached

Virginia lawmakers have reached a budget agreement for 2026-2028 after weeks of debate over data center taxes. The deal would create a new electricity consumption tax on data centers of 1.1 cents per kilowatt-hour of electricity used each month, in addition to existing taxes and fees. It also calls for a study of the sales and use tax exemption data centers receive. Lawmakers are expected to return to Richmond on Monday to vote.