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VA SB192

VA SB192
Sales and use tax exemption; data centers.


summary

Introduced
01/08/2024
In Committee
01/08/2024
Crossed Over
Passed
Dead
04/11/2024

Introduced Session

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. 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 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. Specifically, data center operators must either have a power usage effectiveness score of no greater than 1.2 or, 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. Additionally, the data center operator must procure at least 90 percent of its electricity from carbon-free renewable energy sources or other non-carbon-emitting, renewable sources. The bill also includes reporting requirements for data center operators claiming the exemption.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Continued to 2025 in Finance and Appropriations (14-Y 1-N) (on 01/30/2024)

Bill Topics

Energy
  • ‐ Alternative and Renewable Energy
  • ‐ Energy Conservation
Macroeconomics
  • ‐ Taxation, Tax Policy, and Tax Reform

bill text


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bill summary

Document Type Source Location Created
State Bill Page https://lis.virginia.gov/cgi-bin/legp604.exe?241+sum+SB192 01/09/2024
Fiscal Note/Analysis - Senate: Prefiled and ordered printed; off https://lis.virginia.gov/cgi-bin/legp604.exe?241+oth+SB192F161+PDF 01/23/2024
BillText https://lis.virginia.gov/cgi-bin/legp604.exe?241+ful+SB192+hil 01/09/2024
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