H.B. 897: Retail Sales and Use Tax; exemption for data centers, delayed effective date.
Virginia, 2026 Regular Session. In committee, February 18, 2026.
Last verified
H.B. 897 at a glance
Status In committee In committee, .
No official summary is on file yet. The full text is on the legislature's page, linked below.
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.
Measure Bill.
Sponsors Richard Sullivan (D); Karen Carnegie (D); John Chilton McAuliff (D); Irene Shin (D); J.J. Singh (D); Betsy Carr (D); Rae Cousins (D); Elizabeth Guzman (D); Karen Keys-Gamarra (D); Michelle Maldonado (D); Kathy Tran (D); Vivian Watts (D)
Subjects None on file. The legislature's own list.
Official page lis.virginia.gov/bill-details/20261/HB897. Found through LegiScan (bill 2077877), whose data is CC BY 4.0; the citation is the legislature's own page.
What happened, and when
- February 18, 2026 In committee
H.B. 897 went to committee in the Senate. lis.virginia.gov primary source [1] The official action text: Referred to Committee on Finance and Appropriations.
- February 16, 2026 Passed first chamber
H.B. 897 passed the House of Delegates. lis.virginia.gov primary source [1] The official action text: Engrossed by House - committee substitute.
- February 13, 2026 In committee
H.B. 897 went to committee in the House of Delegates. lis.virginia.gov primary source [1] The official action text: Reported from Appropriations with substitute (16-Y 6-N).
- February 11, 2026 In committee
H.B. 897 went to committee in the House of Delegates. lis.virginia.gov primary source [1] The official action text: Reported from Finance with substitute and referred to Appropriations (16-Y 5-N).
- January 13, 2026 In committee
H.B. 897 went to committee in the House of Delegates. lis.virginia.gov primary source [1] The official action text: Referred to Committee on Finance.
- January 13, 2026 Introduced
H.B. 897 was introduced in the House of Delegates. lis.virginia.gov primary source [1] The official action text: Referred to Committee on Finance.
Newest first. A stage is never overwritten; each entry carries the source it rests on. The status at the top is derived from the newest entry. The action text in Researcher mode is the legislature's own wording.
Sources
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Cite this page
Data Center Record, "H.B. 897: Retail Sales and Use Tax; exemption for data centers, delayed effective date.", https://datacenterrecord.org/bills/va-2026-hb-897. Data: Data Center Record, datacenterrecord.org, CC BY 4.0.
The structured rows are CC BY 4.0. Link to this page; that is what turns a reuse into a citation. Prose stays under copyright.