HB 1132 (Reid), as presented to a subcommittee of House Finance on Monday morning, would have required any locality collecting real property taxes from at least 20 data centers to create a local residential renewable energy incentive program and dedicate to the program all or a portion of the increase in data center real estate and/or machinery and tools tax revenue attributable to the growth in assessed value of the property. The bill envisioned 15 percent of new data center revenue being spent toward residential solar and battery storage investment and 15 percent being used for car tax relief. VACo spoke against the bill, pointing out that the legislation set a problematic precedent by allowing the state to stipulate the use of local revenues generated through a major local revenue source. The bill was continued to 2027 in the full House Finance Committee on Wednesday afternoon.
VACo Contact: Katie Boyle