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Bill > HB1132
VA HB1132
VA HB1132Data center tax revenue; creates local residential renewable energy incentive program.
summary
Introduced
01/14/2026
01/14/2026
In Committee
01/14/2026
01/14/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Data center tax revenue; local residential renewable energy incentive program; tangible personal property tax reimbursement; penalty. Authorizes the governing body of any county, city, or town that collects real or personal property taxes for any real or personal property owned by a data center to create a local residential renewable energy incentive program, through which funds shall be used to reduce existing utility bills for residential customers, to reduce reliance upon fossil fuel power generation facilities, to reduce the need for construction and placement of new transmission lines, and to minimize future electricity costs for residential customers. The bill provides that 15 percent of new data center revenue, defined in the bill, shall be spent toward residential solar and battery storage investment and 15 percent of new data center revenue shall be spent toward providing pro rata reimbursements for residents' tangible personal property tax assessments for any qualifying vehicle. Finally, the bill provides that if any locality violates the requirements for such incentive program, the local treasurer shall immediately transfer any remaining funds directly to the State Treasurer. The State Treasurer shall direct such remaining funds to be used for authorized purposes and thereafter such locality's incentive fund shall be dissolved. The bill makes it a Class 1 misdemeanor for a local treasurer to violate such requirement.
AI Summary
This bill authorizes counties, cities, or towns that collect property taxes from data centers to establish a local residential renewable energy incentive program, using a portion of the increased tax revenue generated by these data centers. Specifically, 15% of this "new data center revenue" (defined as tax revenue exceeding the property's assessed value from before July 1, 2026) must be dedicated to residential solar and battery storage investments, and another 15% must be used to reimburse residents for a portion of their tangible personal property tax on qualifying vehicles. The remaining funds are to be used to reduce existing residential utility bills, decrease reliance on fossil fuels by investing in renewable energy, and minimize future electricity costs for residents. The program prioritizes solar and battery storage for low-income households and those with high energy costs, and requires the use of licensed "qualified installers." If a locality fails to comply with these requirements, its local treasurer must immediately transfer any remaining incentive funds to the State Treasurer, who will then ensure the funds are used for authorized purposes, and the local incentive fund will be dissolved. Violating this provision is a Class 1 misdemeanor for the local treasurer.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Continued to next session in Finance (Voice Vote) (on 02/11/2026)
Official Document
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/bill-details/20261/HB1132 |
| BillText | https://lis.virginia.gov/bill-details/20261/HB1132/text/HB1132HC2 |
| BillText | https://lis.virginia.gov/bill-details/20261/HB1132/text/HB1132HC1 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/22/2026 6:00 pm) | https://lis.blob.core.windows.net/files/1094681.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/HB1132/text/HB1132 |
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