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Bill > HB116


VA HB116

VA HB116
Retail Sales and Use tax; exemption for data centers.


summary

Introduced
01/01/2024
In Committee
01/01/2024
Crossed Over
Passed
Dead
04/11/2024

Introduced Session

Potential new amendment
2024 Regular Session

Bill 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 (a) have a power usage effectiveness score of no greater than 1.2 or (b) 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) it will procure carbon-free renewable energy and associated renewable energy certificates from facilities equal to 90 percent of its electricity requirements or that its electricity will be otherwise derived from non-carbon-emitting, renewable sources.

AI Summary

This bill amends the existing law to require data center operators to meet certain energy efficiency standards in order to be eligible for the sales and use tax exemption on data center purchases. Specifically, the data center must either have a power usage effectiveness score of no greater than 1.2 or, if co-located in a building 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. Additionally, the data center operator must procure 90 percent of its electricity from carbon-free renewable sources by January 1, 2027. The bill also extends the existing sales and use tax exemption for data centers that meet certain investment and job creation thresholds.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Continued to 2025 with amendment(s) in Finance by voice vote (on 02/07/2024)

bill text


bill summary

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bill summary

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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/cgi-bin/legp604.exe?241+sum+HB116
Amendment(s) for HB116 Finance, Subcommittee #2 https://committees.lis.virginia.gov/pdfs/drafts/24106846A.pdf
Fiscal Note/Analysis - House: Prefiled and ordered printed; offe https://lis.virginia.gov/cgi-bin/legp604.exe?241+oth+HB116F161+PDF
BillText https://lis.virginia.gov/cgi-bin/legp604.exe?241+ful+HB116+hil
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