# Virginia HB2578: Retail Sales and Use Tax; exemption for data centers, reports.

Virginia HB2578, Retail Sales and Use Tax; exemption for data centers, reports., is a 2025 Regular Session House bill sponsored by Richard C. "Rip" Sullivan, Jr. (Democratic); status failed, last action 2025-02-05 (Left in Labor and Commerce) (as of 2026-10-17).

- Canonical: https://policyrisk.com/state-bill/VA-HB2578-2025
- As of: 2026-10-17
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia HB2578
- State: Virginia
- Session: 2025 Regular Session
- Title: Retail Sales and Use Tax; exemption for data centers, reports.
- Status: failed
- Chamber: House
- Introduced: 2025-01-12
- Last action: 2025-02-05, Left in Labor and Commerce
- Sponsor: Richard C. "Rip" Sullivan, Jr. (Democratic)
- Cosponsors: 0
- Subjects: Labor and Commerce
- Touches household money: no
- Roll calls: 1 (4 yes, 1 no in all)
- Economic provisions PRIA read: 0

## 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.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Richard C. "Rip" Sullivan, Jr. (Democratic), House

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2025-01-30 | House | Subcommittee recommends laying on the table | pass | 4 | 1 | 1 |

## Actions (6)

- 2025-02-05: Left in Labor and Commerce (House)
- 2025-01-30: Subcommittee recommends laying on the table (4-Y 1-N) (House)
- 2025-01-29: Assigned L & C sub: Subcommittee #4 (House)
- 2025-01-26: Impact statement from TAX (HB2578) (House)
- 2025-01-12: Referred to Committee on Labor and Commerce (House)
- 2025-01-12: Prefiled and ordered printed; Offered 01-13-2025 25104202D (House)

## Bill text

- Substitute, 2025-01-30: [HTML](https://lis.blob.core.windows.net/files/1035219.HTML), [PDF](https://lis.blob.core.windows.net/files/1035218.PDF)
- Introduced, 2025-01-12: [HTML](https://lis.blob.core.windows.net/files/1018997.HTML), [PDF](https://lis.blob.core.windows.net/files/1018996.PDF)

## Related bills

- HR671: Commending JR's Auto Care. (adopted)
- SB941: Robbery; use of air or gas operated weapon, etc., penalty. (failed)
- HB1746: Public safety officer; definition. (failed)
- HB1600: Budget Bill. (failed)
- SB1449: Data centers; site assessment for high energy use facility. (failed)
- HB1609: Essential health benefits benchmark plan; Commission to consider coverage for infertility treatment. (to governor)

## Sources
- [Substitute (HTML)](https://lis.blob.core.windows.net/files/1035219.HTML)
- [Substitute (PDF)](https://lis.blob.core.windows.net/files/1035218.PDF)
- [Introduced (HTML)](https://lis.blob.core.windows.net/files/1018997.HTML)
- [Introduced (PDF)](https://lis.blob.core.windows.net/files/1018996.PDF)

## Related
- [HR671: Commending JR's Auto Care.](https://policyrisk.com/state-bill/VA-HR671-2025)
- [SB941: Robbery; use of air or gas operated weapon, etc., penalty.](https://policyrisk.com/state-bill/VA-SB941-2025)
- [HB1746: Public safety officer; definition.](https://policyrisk.com/state-bill/VA-HB1746-2025)
- [HB1600: Budget Bill.](https://policyrisk.com/state-bill/VA-HB1600-2025)
- [SB1449: Data centers; site assessment for high energy use facility.](https://policyrisk.com/state-bill/VA-SB1449-2025)
- [HB1609: Essential health benefits benchmark plan; Commission to consider coverage for i…](https://policyrisk.com/state-bill/VA-HB1609-2025)
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Source: PRIA, https://policyrisk.com/state-bill/VA-HB2578-2025 (as of 2026-10-17).