Legislative action date (2026-01-01) tracked by AI Data Center Legislation Tracker.[1]
Virginia HB 897 requires data centers to use emission-free (non-diesel) backup generators and demonstrate commitment to clean energy to qualify for sales and use tax exemptions. The bill passed the House 61-34 and passed the full Senate, making Virginia one of the first states to condition data center tax incentives on environmental performance. Governor Spanberger signed HB 897 into law on April 9, 2026, alongside HB 284/SB 371 (voluntary demand flexibility programs for high-load customers using 25+ MW) and bills to aid low-income utility customers affected by data center energy demand.