We have significant experience in assisting colleges and universities to grow physically. From expanding land holdings through real estate transactions to negotiating complex design and construction contracts and lease arrangements, our attorneys have assisted higher educations navigate the complexities of growth. For example, we have helped Maryland colleges and universities develop land holdings as a way of generating revenue - from negotiating terms with private developers to settling construction disputes.
Additionally, we understand the critical importance of the zoning and land use aspects associated with many real estate projects. And we certainly know the high costs associated with delayed projects, whether in the permit or construction phases. Our attorneys have extensive experience in zoning and site plan approval in planning environmental and conservation approvals; permitting matters; subdivision street closings; and complex zoning litigation at the federal, state, and local zoning board, and in trial and appellate courts.
Executive Summary
This update supplements our April 29, 2026, client alert on Virginia’s data center tax reform. On June 22, 2026, the Virginia General Assembly passed budget legislation (HB 30) that resolved the sales tax exemption dispute that had deadlocked the two chambers since March. The compromise preserves the existing sales tax exemption but imposes a first-of-its-kind energy consumption tax of $0.011 per kilowatt-hour on data center electricity usage, expected to generate up to $600 million annually. Governor Spanberger signed the budget into law on June 30, 2026, ahead of the June 30 constitutional deadline, and the new tax took effect July 1, 2026.
While the retention of the sales tax exemption provides near-term certainty for developers who relied on it, the new energy consumption tax introduces a material operating cost that must be incorporated into financial models. Critically, the tax expires at the end of the two-year budget cycle, and the legislation creates a joint legislative subcommittee to study the broader data center tax issue, signaling that this compromise is a waystation, not a final resolution. In the days following the budget signing, Governor Spanberger also signed a broader package of energy affordability legislation, including new restrictions on data center backup generator emissions, new tools for localities to assess data center impacts, ratepayer protections and legislation to rejoin the Regional Greenhouse Gas Initiative (RGGI).
Executive Summary
This update supplements our April 29, 2026, client alert on Virginia’s data center tax reform. On June 22, 2026, the Virginia General Assembly passed budget legislation (HB 30) that resolved the sales tax exemption dispute that had deadlocked the two chambers since March. The compromise preserves the existing sales tax exemption but imposes a first-of-its-kind energy consumption tax of $0.011 per kilowatt-hour on data center electricity usage, expected to generate up to $600 million annually. Governor Spanberger signed the budget into law on June 30, 2026, ahead of the June 30 constitutional deadline, and the new tax took effect July 1, 2026.
While the retention of the sales tax exemption provides near-term certainty for developers who relied on it, the new energy consumption tax introduces a material operating cost that must be incorporated into financial models. Critically, the tax expires at the end of the two-year budget cycle, and the legislation creates a joint legislative subcommittee to study the broader data center tax issue, signaling that this compromise is a waystation, not a final resolution. In the days following the budget signing, Governor Spanberger also signed a broader package of energy affordability legislation, including new restrictions on data center backup generator emissions, new tools for localities to assess data center impacts, ratepayer protections and legislation to rejoin the Regional Greenhouse Gas Initiative (RGGI).
This installment of Tax Tangles explains why more and more companies find enticing the prospect of transferring their real estate to a Real Estate Investment Trust (“REIT”) and highlights tax and business issues to consider in contemplating this strategy.
Readers interested in learning more about this subject or other tax issues affecting the real estate industry may contact Michael Grace, Counsel in our Washington, DC office, at 202-659-6776 or mgrace@wtplaw.com. Stacey Pine, a law clerk in our Washington, D.C. office, took the lead in preparing this article.
This installment of Tax Tangles explains why more and more companies find enticing the prospect of transferring their real estate to a Real Estate Investment Trust (“REIT”) and highlights tax and business issues to consider in contemplating this strategy.
Readers interested in learning more about this subject or other tax issues affecting the real estate industry may contact Michael Grace, Counsel in our Washington, DC office, at 202-659-6776 or mgrace@wtplaw.com. Stacey Pine, a law clerk in our Washington, D.C. office, took the lead in preparing this article.
The Land Development Council of the Homebuilders' Association of Maryland will feature Trent Zivkovich reporting on the fast-changing developments in the new county stormwater fees, going into effect this summer.
The Land Development Council of the Homebuilders' Association of Maryland will feature Trent Zivkovich reporting on the fast-changing developments in the new county stormwater fees, going into effect this summer.
The Baltimore Business Journal's guide to Greater Baltimore's best real estate deals is starting a new era with a new name, new categories and new awards. Mark your calendar for the year's most exciting networking opportunity for Baltimore real estate professionals! This high-profile evening celebrates the movers and shakers in the commercial real estate industry, from big-time developers and brokers to dealmakers and builders.
The Baltimore Business Journal's guide to Greater Baltimore's best real estate deals is starting a new era with a new name, new categories and new awards. Mark your calendar for the year's most exciting networking opportunity for Baltimore real estate professionals! This high-profile evening celebrates the movers and shakers in the commercial real estate industry, from big-time developers and brokers to dealmakers and builders.
Jane Rogers will address "Buildling Code Compliance and Warranty Claims in HOAs and Condominiums" as part of an all-day seminar on building code compliance in DC.
Jane Rogers will address "Buildling Code Compliance and Warranty Claims in HOAs and Condominiums" as part of an all-day seminar on building code compliance in DC.
The ICSC Mid-Atlantic Idea Exchange is one of the premier retail real estate networking events. The conference extends over two days, and the members' cocktail reception at the end of the first day is expected to attract more than 1,100 attendees.
The ICSC Mid-Atlantic Idea Exchange is one of the premier retail real estate networking events. The conference extends over two days, and the members' cocktail reception at the end of the first day is expected to attract more than 1,100 attendees.
Whiteford, Taylor & Preston is pleased to announce that U.S. News and World Report - Best Lawyers ® “Best Law Firms” has awarded the firm exemplary rankings for 2019. Eighteen of the firm’s practices are ranked at the national level, including two practices with national Tier 1 rankings: Litigation and Bankruptcy. At the state level, an additional forty-six practices have been ranked in Maryland, Washington, D.C., and VA.
Whiteford, Taylor & Preston is pleased to announce that U.S. News and World Report - Best Lawyers ® “Best Law Firms” has awarded the firm exemplary rankings for 2019. Eighteen of the firm’s practices are ranked at the national level, including two practices with national Tier 1 rankings: Litigation and Bankruptcy. At the state level, an additional forty-six practices have been ranked in Maryland, Washington, D.C., and VA.
Whiteford Taylor & Preston LLP is very gratified to announce that the firm has received exemplary ratings in the second annual U.S. News & World Report rankings of law firms. In Maryland, WTP was rated highly in 34 practice areas, more than any other firm in the state.
Whiteford Taylor & Preston LLP is very gratified to announce that the firm has received exemplary ratings in the second annual U.S. News & World Report rankings of law firms. In Maryland, WTP was rated highly in 34 practice areas, more than any other firm in the state.
