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VA-HB897 · 2026 session · Legislation

Retail Sales and Use Tax; exemption for data centers, delayed effective date.

Jurisdiction
Virginia
Current status
In Committee
Sponsor
Richard Sullivan
  1. Introduced
  2. In Committee
  3. Floor
  4. Enacted

A bill is not law unless the source record shows enactment.

Latest action

Senate committee offered

Mar 3, 2026

Subject areas

CarbonCertification & StandardsEnergyGrid ReliabilityTax Incentives

Policy mechanisms

Tax incentive / clawback

Tracker tags, not legal conclusions.

Quick summary

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;…

Read full summary

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.

Source-provided or tracker summary; not operative legal text.

Linked record: lis.virginia.gov. Inspect the source before relying on the tracker’s interpretation.

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