VA HB563

Creates a new separate classification (subdivision 49) for personal property taxation covering generating equipment purchased on or after July 1, 2026, to upgrade backup or standby power systems of major energy consumers

Qualifies equipment upgrades from generators not meeting EPA Tier 2 emission standards to selective catalytic reduction generators meeting or exceeding EPA Tier 4 standards, or upgrades to meet New Source Performance Standards enforced by the Department of Environmental Quality

Defines "major energy consumer" as a commercial, industrial, or manufacturing entity with an actual or projected minimum electrical requirement of one megawatt or more per month that participates in a local electric cooperative or demand response program

Allows localities to levy a separate tax rate on this equipment, which cannot exceed the rate applicable to the general class of tangible personal property

Amends § 58.1-3506 of the Code of Virginia governing classifications of tangible personal property for local taxation purposes