Menu
2026 Special Session I

Budget Amendments - HB30 (Conference Report)

View Budget Item
View Budget Item amendments

Joint Subcommittee on Tax Policy Study on Data Centers (language only)

Item 1 #7c

Item 1 #7c

Legislative Department
General Assembly of Virginia

Language

Page 9, strike lines 29-37 and insert:

"5. The Joint Subcommittee on Tax Policy shall study the data center sales and use tax exemption and other data center impacts during the 2026 interim. The Joint Subcommittee shall meet at least two times with the following goals and objectives: (i) reviewing Virginia's data center sales and use tax exemption; (ii) examining the impact of the existing and any potential future exemption or incentives; (iii) approaches taken in other states related to the data center industry including tax preferences, incentives, environmental standards and mitigation, moratoriums on incentives or location of new facilities, and sustainable development requirements; (iv) reviewing methods related to data center investment in non-urbanized areas of the Commonwealth; (v) reviewing the recommendations and options in the 2024 JLARC study on Data Centers in Virginia; (vi) reviewing the estimated direct and indirect economic benefits of data center investment in Virginia; (vii) reviewing the direct or indirect impacts on the environment and quality of life related to data center location and siting; (viii) evaluating the impact of Artificial Intelligence on employment; (ix) reviewing the State Corporation Commission reported data on electric service agreements, water usage, permitted generators; and (x) recommended mechanisms to provide direct revenue to the state from the data center industry. The Joint Subcommittee shall report recommendations to the General Assembly by December 15, 2026. All agencies of the Commonwealth, applicable utilities, and the Weldon Cooper Center for Public Service shall provide technical assistance to the Joint Subcommittee on Tax Policy."



Explanation

(This amendment directs the Joint Subcommittee on Tax Policy to study data centers during the 2026 Interim. The Joint Subcommittee is directed to convene at least two times during the year and and review the impacts associated with the data center industry.)