House Finance Committee advances substitutes, carries numerous tax and data‑center bills to 2027; records votes on HB400, HB897 and HB919

The Virginia House Finance Committee met Feb. 9 and moved a string of tax, energy and data‑center measures forward while postponing many others to the 2027 session.

Delegate Hernandez opened the meeting with Subcommittee No. 1’s recommendation to carry a block of six bills to 2027 and to act on them en bloc. The block included bills on employer‑related taxation, a small‑business tax credit and credits related to housing, solar energy and sustainable aviation fuel. "You rushed me and I'm ready, Madam Chair," Hernandez said before describing the proposals and recommending carryover.

The committee carried the block of six measures to 2027 by voice vote. Among those described were HB243 (corporate tax provisions described as a 100% tax on certain employer‑provided benefits), HB504 (a one‑time $2,500 nonrefundable credit for eligible small businesses, aggregate cap $5 million annually) and HB946 (a $750-per-unit affordable-rental tax credit with per‑landlord and aggregate limits).

The committee also addressed HB400, a motion picture production tax credit bill that the subcommittee had amended. After adopting amendments, the panel recorded a vote and reported HB400 as amended by a recorded tally of 18–2.

Data‑center and related tax bills were a major focus. The chair moved to incorporate several patrons’ measures into HB897 (a bill on sales‑tax exemptions for data‑center equipment). A substitute for HB897 — described on the floor as reflecting ongoing stakeholder negotiations and requiring demonstration of investments in environmental management and energy efficiency for new centers receiving certain benefits — was adopted for referral. The committee reported HB897 with substitute to the Appropriations Committee by recorded vote, 16–5.

Several other procedural and substantive actions followed. HB609 (corporate income tax sourcing for sales other than tangible personal property) was brought before the full committee and reported and referred to Appropriations; the committee recorded that measure as reporting unanimously 20–0. At the chair’s request HB1258 was passed ‘‘by for the day.’’ The committee tabled HB1461 (microchip/semiconductor manufacturing) because of its large fiscal impact; the tabling vote was 19–1.

Subcommittee No. 2 also reported substantive alignment and substitutes for firearm‑related excise taxation. Delegate Anthony described the substitute aligning HB919 and HB1094 to impose an 11% excise on manufacturers’ gross receipts for firearms and ammunition; the committee added a delayed enactment clause (effective 07/01/2027) and reported HB919 as substituted by recorded vote, 14–7.

Other substitutes reported to committee action included HB954 (rounding rules tied to penny discontinuation), reported with substitute unanimously 21–0, and HB1008 (revising code placement of a motor vehicle sales tax provision), reported with substitute unanimously 21–0. Subcommittee No. 3 moved a block of revenue and tax‑structure bills (including proposals to exempt certain food and hygiene items from local sales tax, to make an expanded Earned Income Tax Credit permanent and to change sales tax treatment of services and digital property) to be continued to the 2027 session with substitutes to be incorporated as appropriate.

Votes at a glance

- HB400 (motion picture production tax credit) — reported as amended; recorded vote 18–2.
- HB897 (data‑center sales‑tax exemption; substitute adopted) — reported with substitute to Appropriations; recorded vote 16–5.
- HB919 (firearms/ammunition excise alignment with HB1094; substitute adopted; delayed enactment added) — reported as substituted; recorded vote 14–7.
- HB609 (corporate income tax sourcing) — reported and referred to Appropriations; reported unanimously 20–0.
- HB954 (rounding rules / penny discontinuation substitute) — reported with substitute unanimously 21–0.
- HB1008 (motor vehicle sales tax code change) — reported with substitute unanimously 21–0.
- HB1461 (microchip/semiconductor manufacturing) — tabled due to large fiscal impact; tabling vote 19–1.
- Block carryovers — Subcommittee 1 and Subcommittee 3 moved multiple bills to be carried over to the 2027 session (see committee record for full list).

What’s next

Reported bills with substitutes will be considered in Appropriations or the next committee of referral; measures carried to the 2027 session will not proceed this year. Several bills were continued to allow additional stakeholder negotiations; HB1461 was tabled because the committee identified a substantial fiscal exposure.

Sources: Committee proceedings and recorded votes taken on Feb. 9, 2026 at the House Finance Committee meeting.