April 1, 2021
Virginia Reforms Local Tax Treatment of Energy Storage Projects
HB 2006/SB 1201 and HB 2201/SB 1207
Status: Signed by the Governor
Two bills, HB 2006/SB 1201 and HB 2201/SB 1207, align the tax treatment of energy storage projects between 5 MW and 150 MW with existing Virginia clean energy taxes and ensure that local communities can benefit from energy storage development. Key provisions include:
- Elimination of sales tax for energy storage equipment;
- Option to reduce local tax, or replace tax with a fixed revenue share; and
- Authorization for direct, non-tax benefits to local governments.
The tax reforms provide a less burdensome, simpler, and more transparent local tax regime for energy storage projects as Virginia pursues development of large-scale energy storage to meet its storage target of 3,100 MW by 2035.