VA HB961

Limits the existing data center retail sales and use tax exemption beginning July 1, 2026 to purchases made either before a data center starts operations or as part of a "refresh cycle" for existing data centers

Defines "refresh cycle" as purchases made to replace, repair, or upgrade equipment or enabling software that improve the energy efficiency of such equipment or software

Amends § 58.1-609.3 of the Code of Virginia, which governs commercial and industrial exemptions from retail sales and use tax

Maintains existing exemption requirements including minimum $150 million capital investment and creation of at least 50 new jobs paying 1.5 times the prevailing local average wage

Does not change the exemption's expiration date of June 30, 2035, nor the extended exemption provisions for data centers meeting higher investment thresholds of $35 billion or $100 billion