Finance - Subcommittee #1 Subcommittee Agenda

Chair: Hernandez, Phil

Meeting Date & Time: 02/09/2026 07:00 AM Add to Calendar

Location: House Committee Room B - 205

Testimony/Comments: Sign up to speak or submit comments (opens in a new window)

Additional Resource(s):

Committee Clerk: 804-698-1947

DLS Contact: Schultz (804) 698-1863; Cronin (804) 698-1832

Data Centers

Bill(s) Patron Title
HB641 Krizek Virginia's Great Outdoors Act; established, creates data center land conservation tax.

Summary: A BILL to amend and reenact § 58.1-512 of the Code of Virginia; to amend the Code of Virginia by adding in Title 10.1 a chapter numbered 21.3, consisting of sections numbered 10.1-2141, 10.1-2142, and 10.1-2143, and by adding in Chapter 17 of Title 58.1 an article numbered 13, consisting of sections numbered 58.1-1749 and 58.1-1750; and to repeal § 2.2-1509.4 of the Code of Virginia, relating to Virginia's Great Outdoors Act established; data center land conservation tax; land preservation distributions and appropriations.

Related Bills:

SB393 (Perry - Virginia's Great Outdoors Act; established, creates data center land conservation tax.)

HB784 Anderson RS and UT; commercial and industrial exemptions, disclosure of data center operator exemption.

Summary: A BILL to amend and reenact §§ 58.1-3 and 58.1-609.3 of the Code of Virginia, relating to retail sales and use tax; commercial and industrial exemptions; disclosure of data center operator exemption.

HB897 Sullivan Retail Sales and Use Tax; exemption for data centers.

Summary: A BILL to amend and reenact § 58.1-609.3 of the Code of Virginia, relating to retail sales and use tax; exemption for data centers.

HB961 Watts Retail Sales and Use Tax; commercial and industrial exemptions, data centers.

Summary: A BILL to amend and reenact § 58.1-609.3 of the Code of Virginia, relating to retail sales and use tax; commercial and industrial exemptions; data centers.

HB1132 Reid Data center tax revenue; creates local residential renewable energy incentive program.

Summary: A BILL to amend the Code of Virginia by adding in Chapter 32 of Title 58.1 an article numbered 4.3, consisting of sections numbered 58.1-3246 through 58.1-3249, relating to data center tax revenue; local residential renewable energy incentive program; tangible personal property tax reimbursement; penalty.

Fiscal Impact

Corporate Taxation

Bill(s) Patron Title
HB243 Cole, J.G. Corporate welfare tax; imposes on large employers a tax equal to 100% of qualified employee benefit.

Summary: A BILL to amend and reenact § 2.2-3905 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 17 of Title 58.1 an article numbered 13, consisting of a section numbered 58.1-1749, relating to corporate welfare tax.

HB458 Krizek Income tax, corporate and state; subtraction for broadband grant fund awards.

Summary: A BILL to amend and reenact §§ 58.1-322.02 and 58.1-402 of the Code of Virginia, relating to income tax subtraction; broadband grant fund awards.

Fiscal Impact

Related Bills:

SB380 (Boysko - Income tax, corporate and state; subtraction for broadband grant fund awards.)

Subcommittee #1

Subcommittee recommends laying on the table (7-Y 3-N)

HB609 McNamara Income tax, corporate; sourcing of sales, other than sales of tangible personal property.

Summary: A BILL to amend and reenact §§ 58.1-416, as it is effective and as it may become effective, 58.1-422.4, and 58.1-422.5, as it may become effective, of the Code of Virginia and to repeal the third enactment of Chapter 256 and the third enactment of Chapter 257 of the Acts of Assembly of 2022, relating to corporate income tax; sourcing of sales other than sales of tangible personal property.

HB720 Zehr Material harmful to minors; creates tax on electronic distribution.

Summary: A BILL to amend the Code of Virginia by adding in Chapter 17 of Title 58.1 an article numbered 13, consisting of a section numbered 58.1-1749, relating to tax on electronic distribution of material harmful to minors.

HB958 Watts Income tax, corporate; taxable income; net operating loss.

Summary: A BILL to amend and reenact § 58.1-402 of the Code of Virginia, relating to corporate income tax; taxable income; net operating loss.

Fiscal Impact

Subcommittee #1

Subcommittee recommends reporting (9-Y 0-N)

HB1155 Hodges Income tax subtraction; broadband grant fund awards.

Summary: A BILL to amend and reenact §§ 58.1-322.02 and 58.1-402 of the Code of Virginia, relating to income tax subtraction; broadband grant fund awards.

Fiscal Impact

Subcommittee #1

Subcommittee recommends striking from the docket (8-Y 0-N)

Corporate Income Tax Credits

Bill(s) Patron Title
HB400 Herring Motion picture production; increases aggregate cap on tax credit, extends sunset.

Summary: A BILL to amend and reenact § 58.1-439.12:03 of the Code of Virginia, relating to motion picture production tax credit; sunset.

Fiscal Impact

Related Bills:

SB828 (Bagby - Motion picture production; increases aggregate cap on tax credit, extends sunset.)

HB504 McAuliff Income tax, state; tax credit for certain small businesses.

Summary: A BILL to amend the Code of Virginia by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.15, relating to income tax; small business tax credit.

HB946 Franklin, L.V. Income tax, state; affordable rental housing tax credit.

Summary: A BILL to amend the Code of Virginia by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13, relating to income tax credit; affordable rental housing tax credit.

HB1133 Reid Virginia Solar Energy and Battery Energy Storage Systems Program; established.

Summary: A BILL to amend the Code of Virginia by adding in Chapter 19 of Title 45.2 an article numbered 4, consisting of sections numbered 45.2-1918 through 45.2-1922, and by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13, relating to Department of Energy; Virginia Solar Energy and Battery Energy Storage Systems Program and tax credit; solar energy and battery energy storage projects.

HB1135 Leftwich Income tax, state; tax credit for affordable housing projects.

Summary: A BILL to amend the Code of Virginia by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13, relating to income tax; credit for affordable housing projects.

HB1230 Sewell Income tax, state; sustainable aviation fuel production tax credit.

Summary: A BILL to amend the Code of Virginia by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13, relating to income tax; sustainable aviation fuel production tax credit.

HB1258 Scott, P.A. Pass-through limitation tax credit; report, penalty.

Summary: A BILL to amend the Code of Virginia by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.15, relating to pass-through limitation tax credit; report; penalty.

HB1461 Franklin, M.A. Microchip and semiconductor manufacturing and supply chain tax credits; Virginia Economic Development Partnership Authority evaluation; report.

Summary: A BILL to amend the Code of Virginia by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13, relating to microchip and semiconductor manufacturing and supply chain tax credits.