Virginia · 2026 Regular Session · Bill
HB 897: Retail Sales and Use Tax; exemption for data centers, delayed effective date.
Passed one chamber Official data
- Introduced
- In committee
- Passed one chamber
- Passed both chambers
- Enacted
Last official action: ·Record last updated:
Plain-language summary
HB 897 is a bill introduced in the Virginia House on January 13, 2026. According to its official title, it concerns: Retail Sales and Use Tax; exemption for data centers, delayed effective date. Primary sponsor: Rip Sullivan (Democratic). It lists 11 additional sponsors. Most recent recorded action (March 3, 2026): Senate committee offered.
Generated automatically from the official title, sponsor list, and status record only. It does not characterize the bill’s purpose or effects. How summaries are written
Official summary
Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.
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.
Sponsors
Sponsors by party (alphabetical): Democratic 9
| Name | Role | Party | Chamber | District |
|---|---|---|---|---|
| Rip Sullivan | Primary sponsor | Democratic | House | 6 |
| Karen R. "Kacey" Carnegie | Co-sponsor | Not applicable (committee) | — | — |
| Betsy Carr | Co-sponsor | Democratic | House | 78 |
| Rae Cousins | Co-sponsor | Democratic | House | 79 |
| Liz Guzmán | Co-sponsor | Democratic | House | 22 |
| Karen Keys-Gamarra | Co-sponsor | Democratic | House | 7 |
| Michelle Lopes Maldonado | Co-sponsor | Not applicable (committee) | — | — |
| John Chilton McAuliff | Co-sponsor | Not applicable (committee) | — | — |
| Irene Shin | Co-sponsor | Democratic | House | 8 |
| J.J. Singh | Co-sponsor | Democratic | House | 26 |
| Kathy Tran | Co-sponsor | Democratic | House | 18 |
| Vivian Watts | Co-sponsor | Democratic | House | 14 |
“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.
Recent official actions
- Senate committee offered
- Passed by indefinitely in Finance and Appropriations (15-Y 0-N)
- Fiscal Impact statement From TAX (2/23/2026 4:59 pm)
- Referred to Committee on Finance and Appropriations
- Constitutional reading dispensed (on 1st reading)
- Read third time and passed House (61-Y 34-N 0-A)
- Engrossed by House - committee substitute
- committee substitute agreed to
- committee substitute rejected
- Read second time
- Read first time
- Committee substitute printed 26108015D-H2
Showing 12 most recent of 25 actions. Full history