Virginia local governments could tax qualifying backup generators separately

Virginia counties, cities, and towns would be allowed to set a separate equipment property tax rate for qualifying backup or standby generators. Commercial, industrial, and manufacturing businesses must have actual or projected electricity needs of at least one megawatt per month. They must participate in a local electric cooperative or a program that shifts electricity use away from peak demand. Upgrades must replace equipment below federal Tier 2 emissions standards with selective catalytic reduction generators meeting at least Tier 4 standards, or meet applicable New Source Performance Standards enforced by Virginia's Department of Environmental Quality. Local governments would choose whether to use a separate rate. Tax rates and the rates used to assess taxable value could not exceed those for general personal property, meaning movable property such as equipment. The equipment classification would cover generators purchased on or after July 1, 2026.