HB897Introduced in the House of Delegates
Retail Sales and Use Tax; exemption for data centers, delayed effective date.
Introduced by Richard Sullivan, District 6
What does this bill do?
Plain-English breakdown
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Official description
Retail sales and use tax; exemption for data centers. 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, 2027, not use co-located generating facilities that emit carbon dioxide, other than backup generators; (ii) beginning July 1, 2029, contract for a certain percentage of energy, capacity, and renewable energy certificates from clean energy resources, as evidenced by a certification from the State Corporation Commission, or contracts and service agreements; (iii) utilize only non-carbon dioxide-emitting backup power sources, such as energy storage resources, beginning on a date dependent on the data center's initial service date; and (iv) demonstrate, for any new data center issued a final certificate of occupancy or its equivalent on or after January 1, 2030, or for any data center operator seeking an amended memorandum of understanding, sufficient investment in environmental management and energy efficiency measures to provide system-wide benefits, as defined in the bill. Finally, the bill has a delayed effective date of July 1, 2027.
Where it stands
Senate committee offered
March 3, 2026
How did lawmakers vote?
House of Delegates votes
4 recorded votes · each counted separately
Senate votes
1 recorded vote · each counted separately
SenateStage: Passed by indefinitely in Finance and Appropriations (15-Y 0-N) · March 3, 2026
15
Yes
0
No
0
Absent or Not Voting
15 senators recorded in this Senate vote. Colors show vote categories only, not whether a vote was good or bad.
What do people think?
Citizen Voice
How would you vote on this bill?
An unofficial public opinion poll. It does not affect the bill or the official vote.
One response per device. Location is self-reported and not verified. Results are informal and not a scientific survey.
See how each senator voted
| Senator | District | Vote |
|---|---|---|
| Mark Obenshain | 2 | Yes |
| Todd Pillion | 6 | Yes |
| Creigh Deeds | 11 | Yes |
| Lashrecse Aird | 13 | Yes |
| Lamont Bagby | 14 | Yes |
| Louise Lucas | 18 | Yes |
| Aaron Rouse | 22 | Yes |
| Mamie Locke | 23 | Yes |
| Richard Stuart | 25 | Yes |
| Ryan McDougle | 26 | Yes |
Bill history
Prefiled and ordered printed; Offered 01-14-2026 26104836D
Referred to Committee on Finance
Assigned HFIN sub: Subcommittee #1
Fiscal Impact statement From TAX (2/8/2026 2:26 pm)
Incorporates HB961 (Watts)
Incorporates HB784 (Anderson)
House committee offered
Reported from Finance with substitute and referred to Appropriations (16-Y 5-N)
Committee substitute printed 26107782D-H1
Substitute bill reprinted 26107782D
Assigned HAPP sub: Commerce Agriculture & Natural Resources
Subcommittee recommends reporting with substitute (5-Y 2-N)
Reported from Appropriations with substitute (16-Y 6-N)
Committee substitute printed 26108015D-H2
Read first time
Read second time
committee substitute rejected
committee substitute agreed to
Engrossed by House - committee substitute
Read third time and passed House (61-Y 34-N 0-A)
Constitutional reading dispensed (on 1st reading)
Referred to Committee on Finance and Appropriations
Fiscal Impact statement From TAX (2/23/2026 4:59 pm)
Passed by indefinitely in Finance and Appropriations (15-Y 0-N)
Senate committee offered
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