VirginiaRetail Sales and Use Tax; exemption for data centers, delayed effective date.
What it does
Retail sales and use tax; exemption for data centers. Requires a data center operator, in order to be eligible for the existing data center sales and use tax exemption, to (i) beginning July 1, 2027, not use co-located generating facilities that emit carbon dioxide, other than backup generators; (ii) beginning July 1, 2029, contract for a certain percentage of energy, capacity, and renewable energy certificates from clean energy resources, as evidenced by a certification from the State Corporation Commission, or contracts and service agreements; (iii) utilize only non-carbon dioxide-emitting backup power sources, such as energy storage resources, beginning on a date dependent on the data center's initial service date; and (iv) demonstrate, for any new data center issued a final certificate of occupancy or its equivalent on or after January 1, 2030, or for any data center operator seeking an amended memorandum of understanding, sufficient investment in environmental management and energy efficiency measures to provide system-wide benefits, as defined in the bill. Finally, the bill has a delayed effective date of July 1, 2027.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 3Senate committee offeredLatest
- Vote recorded Passed by indefinitely in Finance and Appropriations. Result: pass.Upper
- Mar 3Passed by indefinitely in Finance and Appropriations (15-Y 0-N)Minor
- Feb 23Fiscal Impact statement From TAX (2/23/2026 4:59 pm)
- Feb 18Referred to Committee on Finance and AppropriationsMinor
- Feb 18Constitutional reading dispensed (on 1st reading)
- Feb 17Read third time and passed House (61-Y 34-N 0-A)Passed House
- Vote recorded H VOTE:. Result: pass.Lower
- Feb 16Engrossed by House - committee substituteMajor
- Feb 16committee substitute agreed toMajor
- Feb 16committee substitute rejected
- Feb 16Read second timeMinor
- Feb 15Read first timeMinor
- Feb 13Committee substitute printed 26108015D-H2Major
- Vote recorded Reported from Appropriations with substitute. Result: pass.Lower
- Vote recorded Subcommittee recommends reporting with substitute. Result: pass.Lower
- Feb 13Reported from Appropriations with substitute (16-Y 6-N)Minor
- Feb 13Subcommittee recommends reporting with substitute (5-Y 2-N)Major
- Feb 13Assigned HAPP sub: Commerce Agriculture & Natural ResourcesMinor
- Feb 12Substitute bill reprinted 26107782D
- Feb 12Committee substitute printed 26107782D-H1Major
- Feb 11Reported from Finance with substitute and referred to Appropriations (16-Y 5-N)Minor
- Vote recorded Reported from Finance with substitute. Result: pass.Lower
- Feb 11House committee offered
- Feb 11Incorporates HB784 (Anderson)
- Feb 11Incorporates HB961 (Watts)
- Feb 8Fiscal Impact statement From TAX (2/8/2026 2:26 pm)
- Feb 5Assigned HFIN sub: Subcommittee #1Minor
- Jan 13Referred to Committee on FinanceMinor
- Jan 13Prefiled and ordered printed; Offered 01-14-2026 26104836DIntroduced
- Mar 3Senate committee offeredLatest