VirginiaHB25782025 Regular SessionHouse

Retail Sales and Use Tax; exemption for data centers, reports.

Sponsored By: Richard C. "Rip" Sullivan, Jr. (Democratic)

Failed

Summary

Retail sales and use tax; exemption for data centers; reports. 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, 2030, purchase a certain percentage of the data center's annual electric load from clean energy resources, (ii) beginning July 1, 2030, demonstrate sufficient investment in energy efficiency measures to provide system-wide benefits, and (iii) beginning July 1, 2027, use only backup generators that meet certain emissions standards. The bill requires the Commission on Electric Utility Regulation to examine the cost and feasibility of data centers using onsite backup and primary generation that is not diesel-fired and report its findings and recommendations to the General Assembly no later than December 1, 2025. The bill requires the Department of Energy to (a) identify opportunities for beneficial use of waste heat from data centers; (b) create and publish on its website an interactive map of existing and proposed data centers and potential public and private heat users; (c) develop a strategic plan to accelerate data center heat reuse in the Commonwealth; (d) designate an employee within the Department to lead the Commonwealth's efforts to reuse data center heat; and (e) convene a stakeholder work group to provide expertise and feedback on the Department's efforts to accelerate the use of waste heat from data centers. The Department is required to report its findings to the General Assembly no later than December 1, 2025. Finally, the bill requires investor-owned electric utilities to file with the State Corporation Commission for approval of a voluntary tariff to facilitate large customer procurement of clean energy.

Labor and Commerce

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Bill Overview

No Economic Impacts Identified for this Bill

Sponsors & Cosponsors

Sponsor

  • Richard C. "Rip" Sullivan, Jr.

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 4 • No: 1

House vote • 1/30/2025

Subcommittee recommends laying on the table

Yes: 4 • No: 1 • Other: 1

Actions Timeline

  1. Left in Labor and Commerce

    2/5/2025House
  2. Subcommittee recommends laying on the table (4-Y 1-N)

    1/30/2025House
  3. Assigned L & C sub: Subcommittee #4

    1/29/2025House
  4. Impact statement from TAX (HB2578)

    1/26/2025House
  5. Referred to Committee on Labor and Commerce

    1/12/2025House
  6. Prefiled and ordered printed; Offered 01-13-2025 25104202D

    1/12/2025House

Bill Text

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