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):

Video: Archived

Committee Clerk: 804-698-1947

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

Data Centers

Bill(s) Patron Title
HB563 Reid Personal property taxation; establishes classification for major energy consumer equipment upgrades.

Summary: A BILL to amend and reenact § 58.1-3506 of the Code of Virginia, relating to personal property taxation; classifications; major energy consumer equipment upgrades.

Fiscal Impact

Last actions:

  • 1/31/2026 - Fiscal Impact statement From TAX (1/31/2026 3:44 pm)
  • 2/3/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/9/2026 - House subcommittee offered
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)
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.

Fiscal Impact

Last actions:

  • 1/30/2026 - Placed on Finance Agenda
  • 2/4/2026 - Fiscal Impact Statement from Department of Planning and Budget (HB641)
  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)

Related Bills:

SB393 (Perry)

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.

Fiscal Impact

Last actions:

  • 1/30/2026 - Placed on Finance Agenda
  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/7/2026 - Fiscal Impact statement From TAX (2/7/2026 7:24 pm)
  • 2/8/2026 - House subcommittee offered
  • 2/10/2026 - Placed on Finance Agenda
HB897 Sullivan Retail Sales and Use Tax; exemption for data centers, delayed effective date.

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.

Fiscal Impact

Last actions:

  • 2/16/2026 - committee substitute rejected
  • 2/16/2026 - committee substitute agreed to
  • 2/16/2026 - Engrossed by House - committee substitute
  • 2/17/2026 - Read third time and passed House (61-Y 34-N 0-A)
  • 2/23/2026 - Fiscal Impact statement From TAX (2/23/2026 4:59 pm)

Senate Committee Actions:

• 2/18/2026 - Constitutional reading dispensed (on 1st reading)

• 2/18/2026 - Referred to Committee on Finance and Appropriations

Commerce, Agriculture and Natural Resources Subcommittee

Subcommittee recommends reporting with substitute (5-Y 2-N)

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.

Fiscal Impact

Last actions:

  • 1/13/2026 - Referred to Committee on Finance
  • 1/30/2026 - Placed on Finance Agenda
  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/8/2026 - Fiscal Impact statement From TAX (2/8/2026 2:45 pm)
  • 2/10/2026 - Placed on Finance Agenda
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

Last actions:

  • 1/30/2026 - Placed on Finance Agenda
  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/9/2026 - House subcommittee offered
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)

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.

Fiscal Impact

Subcommittee recommends continuing to (Voice Vote)

Last actions:

  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/8/2026 - Fiscal Impact statement From TAX (2/8/2026 12:59 pm)
  • 2/9/2026 - Subcommittee recommends continuing to (Voice Vote)
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)

Subcommittee #1

Subcommittee recommends continuing to (Voice Vote)

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.

Fiscal Impact

Last actions:

  • 2/8/2026 - Fiscal Impact statement From TAX (2/8/2026 2:03 pm)
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - House committee offered
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)
  • 2/12/2026 - House committee offered
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.

Fiscal Impact

Subcommittee recommends continuing to (Voice Vote)

Last actions:

  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/7/2026 - Fiscal Impact statement From TAX (2/7/2026 8:41 pm)
  • 2/9/2026 - Subcommittee recommends continuing to (Voice Vote)
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)

Subcommittee #1

Subcommittee recommends continuing to (Voice Vote)

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

Subcommittee recommends reporting with amendment(s) (11-Y 0-N)

Yeas (11): Hernandez, Anthony, Callsen, Gardner, Maldonado, Pope Adams, Bulova, Fowler, McNamara, Davis, Watts

Last actions:

  • 2/16/2026 - committee amendments agreed to
  • 2/16/2026 - Engrossed by House as amended
  • 2/16/2026 - Printed as engrossed 26105056D-E
  • 2/17/2026 - Read third time and passed House (74-Y 23-N 0-A)
  • 2/19/2026 - Fiscal Impact statement From TAX (2/19/2026 1:51 pm)

Senate Committee Actions:

• 2/18/2026 - Constitutional reading dispensed (on 1st reading)

• 2/18/2026 - Referred to Committee on Finance and Appropriations

Related Bills:

SB828 (Bagby)

Subcommittee #1

Subcommittee recommends reporting with amendment(s) (11-Y 0-N)

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.

Fiscal Impact

Subcommittee recommends continuing to (Voice Vote)

Last actions:

  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/8/2026 - Fiscal Impact statement From TAX (2/8/2026 1:29 pm)
  • 2/9/2026 - Subcommittee recommends continuing to (Voice Vote)
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)

Subcommittee #1

Subcommittee recommends continuing to (Voice Vote)

HB760 Runion Income tax, state; energy-efficient homes tax credits.

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; energy-efficient new homes tax credits.

Fiscal Impact

Subcommittee recommends laying on the table (8-Y 3-N)

Yeas (8): Hernandez, Anthony, Callsen, Gardner, Maldonado, Pope Adams, Bulova, Watts

Nays (3): Fowler, McNamara, Davis

Last actions:

  • 2/4/2026 - Fiscal Impact statement From TAX (2/4/2026 1:33 pm)
  • 2/6/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/9/2026 - House subcommittee offered
  • 2/9/2026 - House subcommittee offered
  • 2/9/2026 - Subcommittee recommends laying on the table (8-Y 3-N)

Subcommittee #1

Subcommittee recommends laying on the table (8-Y 3-N)

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.

Fiscal Impact

Subcommittee recommends continuing to (Voice Vote)

Last actions:

  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/7/2026 - Fiscal Impact statement From TAX (2/7/2026 7:40 pm)
  • 2/9/2026 - Subcommittee recommends continuing to (Voice Vote)
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)

Subcommittee #1

Subcommittee recommends continuing to (Voice Vote)

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.

Fiscal Impact

Subcommittee recommends continuing to (Voice Vote)

Last actions:

  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/8/2026 - Fiscal Impact Statement from Department of Planning and Budget (HB1133)
  • 2/9/2026 - Subcommittee recommends continuing to (Voice Vote)
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)

Subcommittee #1

Subcommittee recommends continuing to (Voice Vote)

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.

Fiscal Impact

Subcommittee recommends laying on the table (8-Y 3-N)

Yeas (8): Hernandez, Anthony, Callsen, Gardner, Maldonado, Pope Adams, Bulova, Watts

Nays (3): Fowler, McNamara, Davis

Last actions:

  • 1/14/2026 - Referred to Committee on Finance
  • 1/30/2026 - Placed on Finance Agenda
  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/7/2026 - Fiscal Impact statement From TAX (2/7/2026 8:27 pm)
  • 2/9/2026 - Subcommittee recommends laying on the table (8-Y 3-N)

Subcommittee #1

Subcommittee recommends laying on the table (8-Y 3-N)

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.

Fiscal Impact

Subcommittee recommends continuing to (Voice Vote)

Last actions:

  • 2/7/2026 - Fiscal Impact statement From TAX (2/7/2026 7:50 pm)
  • 2/9/2026 - House subcommittee offered
  • 2/9/2026 - Subcommittee recommends continuing to (Voice Vote)
  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Continued to next session in Finance (Voice Vote)

Subcommittee #1

Subcommittee recommends continuing to (Voice Vote)

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.

Fiscal Impact

Last actions:

  • 1/14/2026 - Referred to Committee on Finance
  • 1/30/2026 - Placed on Finance Agenda
  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/8/2026 - Fiscal Impact statement From TAX (2/8/2026 2:59 pm)
  • 2/10/2026 - Placed on Finance Agenda
HB1461 Franklin, M.A. Income tax, state & corporate; microchip & semiconductor manufacturing & supply chain tax credits.

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.

Fiscal Impact

Last actions:

  • 1/23/2026 - Referred to Committee on Finance
  • 1/30/2026 - Placed on Finance Agenda
  • 2/4/2026 - Fiscal Impact statement From TAX (2/4/2026 7:44 pm)
  • 2/5/2026 - Assigned HFIN sub: Subcommittee #1
  • 2/10/2026 - Placed on Finance Agenda

Individual Income Tax Credit

Bill(s) Patron Title
HB697 Kent Income tax, state; credit for surviving spouse's real property taxes.

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; credit for surviving spouse's real property taxes.

Fiscal Impact

Last actions:

  • 2/10/2026 - Placed on Finance Agenda
  • 2/11/2026 - Reported from Finance and referred to Appropriations (21-Y 0-N)
  • 2/11/2026 - Referred to Committee on Appropriations
  • 2/11/2026 - Reported and Referred by Committee
  • 2/11/2026 - Reported and Referred by Committee