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VA-SB465 · 2026 session · Legislation

Retail Sales and Use Tax; exemption for data centers.

Jurisdiction
Virginia
Current status
Introduced
Sponsor
Creigh Deeds
  1. Introduced
  2. In Committee
  3. Floor
  4. Enacted

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

Latest action

Left in Finance and Appropriations

Feb 17, 2026

Subject areas

CarbonCertification & StandardsEnergyTax Incentives

Policy mechanisms

Tax incentive / clawback

Tracker tags, not legal conclusions.

Quick summary

Sales and use tax exemption; data centers. Requires data center operators to meet certain energy efficiency standards in order to be eligible for the sales and use tax exemption for data center purchases. Under the bill, a data center operator shall be eligible for the exemption only if such operator demonstrates that (i) its facilities either have a power usage effectiveness score of no greater than 1.2 or, for data centers co-located in buildings with other commercial uses, achieve an energy efficiency level of no less than the most efficient 15 percent of similar buildings constructed in…

Read full summary

Sales and use tax exemption; data centers. Requires data center operators to meet certain energy efficiency standards in order to be eligible for the sales and use tax exemption for data center purchases. Under the bill, a data center operator shall be eligible for the exemption only if such operator demonstrates that (i) its facilities either have a power usage effectiveness score of no greater than 1.2 or, for data centers co-located in buildings with other commercial uses, achieve an energy efficiency level of no less than the most efficient 15 percent of similar buildings constructed in the previous five years and (ii) by January 1, 2028, it will procure carbon-free renewable energy and associated renewable energy certificates equal to 90 percent of its electricity requirements or its electricity will be otherwise derived from non-carbon-emitting, renewable sources.

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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