Virginia 2022 Regular Session

Virginia Senate Bill SB684

Introduced
1/20/22  
Refer
1/20/22  
Report Pass
2/1/22  
Engrossed
2/4/22  
Refer
2/21/22  
Report Pass
2/23/22  
Enrolled
3/2/22  
Chaptered
4/11/22  

Caption

Certified pollution control equipment; certification by subdivisions.

Impact

If enacted, SB684 would significantly impact tax laws surrounding pollution control in Virginia. It would provide a clear pathway for businesses and local governments to seek financial relief through tax exemptions, specifically for investments made in pollution control technologies. This is expected to lower the costs for companies investing in renewable energy and pollution abatement efforts, thus aiding the transition to greener practices and potentially boosting Virginia’s economy by attracting new projects and investments in sustainable technologies.

Summary

SB684 aims to amend the Code of Virginia to provide tax exemptions for certified pollution control equipment and facilities. This includes property, equipment, and devices specifically designed to abate or prevent pollution of the atmosphere and waters in the Commonwealth. The bill would establish a framework that allows localities and state entities to certify such equipment for exemption from taxation, thereby incentivizing investment in cleaner technologies and facilities that align with state environmental goals. The definition of certified pollution control equipment includes a wide range of technologies, particularly those involved in energy generation, storage, and sewage treatment.

Sentiment

The sentiment around SB684 appears positive among environmental advocates and renewable energy supporters who recognize the bill as a pivotal step towards improving air and water quality in Virginia. The perceived benefits for business investment and local job creation as a result of tax exemptions has also garnered support. However, some skeptics emphasize the importance of ensuring robust certification processes and monitoring to prevent misuse of tax exemptions, which could detract from the intended environmental goals.

Contention

Despite the overall support for SB684, debates have arisen regarding the implementation and certification of what constitutes 'certified pollution control equipment.' There are concerns about the potential for loopholes that could allow less effective technologies to qualify for tax relief. Moreover, discussions around the need for a comprehensive and standardized approach to evaluating and certifying these technologies highlight the complexities of achieving meaningful environmental outcomes while also providing economic incentives.

Companion Bills

VA HB148

Same As Certified pollution control equipment; certification by subdivisions.

Similar Bills

VA HB148

Certified pollution control equipment; certification by subdivisions.

VA SB736

Sales tax; data center exemption.

VA SB736

Sales tax; data center exemption.

VA HB1400

Retail Sales and Use Tax; commercial and industrial exemptions, extends sunset date.

VA SB1001

Retail Sales and Use Tax; exemption for electric utility equipment.

VA SB1294

Retail Sales and Use Tax; removes June 30, 2035, sunset on local exemption for data centers.

VA HB2334

Retail Sales and Use Tax; exemption for oil and gas drilling equipment, extends sunset provision.

VA HB116

Retail Sales and Use tax; exemption for data centers.