Bill
Bill > HB961
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Retail sales and use tax; commercial and industrial exemptions; data centers. Limits, beginning July 1, 2026, the retail sales and use tax exemption for computer equipment or enabling software to (i) the purchase or lease of equipment or enabling software for use in a data center, provided that such purchase or lease takes place prior to the start of operations for such data center, or (ii) the purchase or lease of equipment or enabling software as part of a refresh cycle of an existing data center. The bill defines "refresh cycle" to mean purchases or leases made to replace, repair, or upgrade the equipment or enabling software that improve the energy efficiency of such equipment or software.
AI Summary
This bill, effective July 1, 2026, modifies the retail sales and use tax exemption for computer equipment and software used in data centers, which are facilities for processing, storing, and retrieving data. The exemption will now be limited to two scenarios: first, for equipment and software purchased or leased before a data center begins operations, and second, for purchases or leases made as part of a "refresh cycle." A refresh cycle is defined as acquiring new equipment or software to replace, repair, or upgrade existing components in a way that improves energy efficiency. This change aims to refine the scope of tax relief for data center investments.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Incorporated by Finance (HB897-Sullivan) (Voice Vote) (on 02/11/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20261/HB961 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (2/8/2026 2:45 pm) | https://lis.blob.core.windows.net/files/1133846.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/HB961/text/HB961 |
Loading...