A BILL to amend and reenact § 58.1-512 of the Code of Virginia; to amend the Code of Virginia by adding in Title 10.1 a chapter numbered 21.3, consisting of sections numbered 10.1-2141, 10.1-2142, and 10.1-2143, and by adding in Chapter 17 of Title 58.1 an article numbered 13, consisting of sections numbered 58.1-1749 and 58.1-1750; and to repeal § 2.2-1509.4 of the Code of Virginia, relating to Virginia's Great Outdoors Act established; data center land conservation tax; land preservation distributions and appropriations.
HB641 establishes the “Virginia’s Great Outdoors Act,” a new conservation funding framework centered on land preservation, public access, trails, and support for Virginia tribes. The bill declares state policy to protect ecologically, culturally, historically, recreationally, and agriculturally important lands, and it creates a Virginia Tribal Commitment Fund to support tribal nation building, cultural revitalization, capacity building, land acquisition, and related land-protection purposes. It also amends the existing land preservation tax credit program to continue and refine tax incentives for qualifying conservation donations, including fee-simple and less-than-fee interests such as conservation easements and preservation restrictions.
A major feature of the bill is a new “data center land conservation tax” of $3 per square foot of data center facility footprint, imposed beginning January 1, 2027 on data centers with footprints of at least 25,000 square feet. Beginning July 1, 2028, at least $250 million of annual revenue from that tax must be distributed to a detailed list of conservation and outdoor-recreation purposes, including state parks, public lands infrastructure, land acquisition, trails, wildlife corridors, historic preservation, farmland and forestland preservation, outdoor education, an Office of Outdoor Recreation, and the Virginia Tribal Commitment Fund. The bill also repeals § 2.2-1509.4, which appears to be the existing budget-related mechanism tied to land preservation appropriations.
The bill would significantly affect Virginia tax and conservation law by creating a new dedicated tax stream and mandatory spending structure for land conservation and outdoor recreation. It would also modify the administration of land preservation tax credits, including application deadlines, annual caps, verification procedures for large credits, appraisal requirements, and reporting obligations. In practical terms, it would shift state policy toward a more centralized and predictable funding model for conservation, while also imposing a new tax burden on data center operators.
The general sentiment reflected in the available history is limited but suggests the bill was not advanced in the committee process, as it was continued to the next session in Finance by voice vote. That procedural outcome indicates the proposal did not receive enough immediate support for passage in the short term, though the voice vote and continuation also suggest it was still under consideration rather than outright rejected. No recorded floor votes or committee transcript debate were provided.
The main points of contention likely center on the new tax on data centers and the scale and earmarking of the resulting revenue. Supporters would likely emphasize conservation, public access, trails, tribal support, and preservation funding, while opponents may question the impact on the data center industry, the size of the tax, and whether dedicating large sums to specific programs is the best use of tax revenue. The bill also contains technical and policy details around land preservation tax credits that could draw scrutiny from landowners, conservation groups, appraisers, and tax administrators.
HB641 would add a new chapter to Title 10.1 establishing Virginia’s Great Outdoors Act and a new article in Title 58.1 imposing a data center land conservation tax. It would also amend the land preservation tax credit statute in § 58.1-512, create the Virginia Tribal Commitment Fund, require annual reporting on conservation donations, and repeal § 2.2-1509.4. The bill would materially change how conservation and outdoor-recreation programs are funded by directing at least $250 million annually from data center tax revenue to specified land, trail, park, historic, wildlife, and tribal purposes, while also altering the administration and limits of land preservation tax credits for individuals and corporations.
The available legislative history shows limited recorded debate, but the bill’s continuation to the next session in the Finance Committee by voice vote suggests cautious or mixed support rather than clear momentum toward enactment. The proposal appears to have appealed to conservation, land preservation, outdoor recreation, and tribal-support interests, but it also likely raised concerns about creating a new industry-specific tax and committing large sums to designated uses. With no transcript or roll-call vote provided, the overall sentiment can only be characterized as tentative and unresolved.
The most likely points of contention are the new tax on data centers, the threshold and rate structure for that tax, and the bill’s mandatory allocation of revenue to a long list of earmarked programs. Data center operators and business advocates may object to the added cost and the targeting of a single industry, while conservation and public-access supporters may favor the dedicated funding. There may also be debate over the expanded or revised land preservation tax credit rules, including appraisal verification, annual caps, carryforward periods, and the administrative burden on taxpayers, appraisers, and state agencies.