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HB 1132

Data center tax revenue; creates local residential renewable energy incentive program.

2026 Regular Session Introduced by David Reid

Virginia bill dedicates data center tax revenue to fund residential renewable energy incentives for local homeowners, linking commercial taxation to residential clean energy subsidies.

Assigned HFIN sub: Subcommittee #1
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Bill Summary · HB 1132

Legislative bill overview

HB 1132 directs tax revenue generated from data centers in Virginia toward funding a new local residential renewable energy incentive program. The bill creates a mechanism to use commercial data center taxation to subsidize renewable energy adoption for homeowners at the local level. This represents a policy linkage between attracting data center investment and promoting residential clean energy infrastructure.

Why is this important

Data centers represent significant tax bases for Virginia localities while consuming substantial electricity, making them relevant to energy policy discussions. Redirecting data center revenue to residential renewable energy could accelerate home solar/renewable installations while improving air quality and reducing grid strain. However, this creates fiscal tradeoffs—revenue directed to renewable incentives cannot fund other local priorities like schools, infrastructure, or emergency services.

Potential points of contention

  • Revenue allocation concerns: Localities may oppose dedicating data center tax revenue to one specific program rather than general fund needs or other community priorities
  • Program design and equity: Questions about who qualifies for incentives (income caps, property ownership requirements) and whether benefits reach disadvantaged communities or concentrate among wealthier homeowners
  • Data center competitiveness: Restricting data center tax revenue may reduce Virginia's incentives to attract these facilities compared to neighboring states, potentially limiting economic development and job creation

Compiled from official sources — confirm details with the bill’s official record.

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