Del. Vivian Watts

Public schools; indoor air quality; industry-recognized uniform inspection and evaluation. Adds several items that are required to be included in the industry-recognized uniform inspection and evaluation of the heating, ventilation, and air conditioning system that is required at least every four years for each public elementary and secondary school building, including measurement of radon levels in the air and testing for moisture incursion. The bill has a delayed effective date of July 1, 2027.

State correctional facilities; participation of prisoners in employment and educational programs; reentry planning. Expands the program assignments in which the Director of the Department of Corrections may place a prisoner while such prisoner is confined in a state correctional facility. The bill requires the Director to place a prisoner in an appropriate program assignment within (i) 90 days of the arrival of a prisoner sentenced to a new term of confinement to a state correctional facility or (ii) 60 days of a prisoner already in custody being transferred to a new state correctional facility and provides that participation in such program assignments shall be for an average of 30 hours per week, calculated individually across the calendar year. Finally, the bill expands upon the requirements for a prisoner's reentry plan, including requiring an assessment, if necessary, of a prisoner's readiness to take a high school equivalency test and any modifications needed for the prisoner to take or improve upon such test, and making available peer and group educational programs developed and led by qualified prisoners.

Retail sales and use tax; exemption for data centers. Requires a data center operator, in order to be eligible for the existing data center sales and use tax exemption, to (i) beginning July 1, 2027, not use co-located generating facilities that emit carbon dioxide, other than backup generators; (ii) beginning July 1, 2029, contract for a certain percentage of energy, capacity, and renewable energy certificates from clean energy resources, as evidenced by a certification from the State Corporation Commission, or contracts and service agreements; (iii) utilize only non-carbon dioxide-emitting backup power sources, such as energy storage resources, beginning on a date dependent on the data center's initial service date; and (iv) demonstrate, for any new data center issued a final certificate of occupancy or its equivalent on or after January 1, 2030, or for any data center operator seeking an amended memorandum of understanding, sufficient investment in environmental management and energy efficiency measures to provide system-wide benefits, as defined in the bill. Finally, the bill has a delayed effective date of July 1, 2027.

Corporate income tax; taxable income; net operating loss. Provides that, beginning in taxable year 2027, for purposes of calculating the Virginia taxable income of corporations, federal income means any income taxable to the corporation under federal law for such year excluding net operating loss deductions under federal tax law. The bill also creates a Virginia corporate income tax net operating loss deduction, beginning in taxable year 2027, in an amount equal to the aggregate Virginia net operating losses for such taxable year, plus any transitional net operating loss deduction, pursuant to a calculation in the bill, and subject to certain other adjustments in the bill. The bill also prohibits a corporation's Virginia taxable income, after all other adjustments, allocation, and apportionment, from being reduced below zero by a Virginia net operating loss deduction. The bill also includes particular procedures for corporate income tax returns prepared on a consolidated or a combined basis. Finally, the bill directs the Department of Taxation to issue preliminary guidelines implementing the provisions of the bill and to cooperate with and seek counsel from interested stakeholders before issuing its final guidelines. The bill has a delayed effective date of January 1, 2027.

Personal property taxes; valuation. Requires that tangible personal property employed in a trade or business, other than such property set out for different valuation in current law, shall be valued by means of a percentage or percentages of original cost to the taxpayer. Current law requires such property to be valued only by means of a percentage or percentages of original cost. The provisions of this bill do not become effective unless reenacted by the 2027 Session of the General Assembly.

Maddy summaryThis is a commemorative resolution (SJ 109) honoring Virginia Mozell Jefferson Tyler. It formally recognizes and celebrates her life and contributions, as is standard for such resolutions. The bill passed both the Senate and House in February 2026 and is now enacted as a ceremonial tribute with no substantive policy changes or direct impact on constituents or laws.

Mass Violence Care Fund established. Creates the Mass Violence Care Fund as a subfund within the Criminal Injuries Compensation Fund for the purpose of reimbursing victims or claimants of mass violence, defined in the bill, for unreimbursed medical expenses related to a mass violence event, defined in the bill. The bill directs the Virginia Workers' Compensation Commission to promulgate guidelines and criteria for the payment of claims from the Mass Violence Care Fund within one year of the effective date of the bill.

Department of Transportation; work group; examine reclaimed asphalt pavement study; report. Directs the Department of Transportation to convene a work group to examine the Characterizing and Improving Binder Availability and Activity in Asphalt Mixtures with Reclaimed Asphalt Pavement (RAP) study conducted by the Virginia Transportation Research Council and make certain recommendations, and to submit a report of the work group's findings and recommendations to the Chairs of the House and Senate Committees on Transportation, the House Committee on Agriculture, Chesapeake and Natural Resources, and the Senate Committee on Agriculture, Conservation and Natural Resources no later than December 1, 2026.

Taxable income; subtractions; retirement income of certain federal employees. Establishes, beginning in taxable year 2026, an individual income tax subtraction for 20 percent of the retirement income of retirees covered under the federal Civil Service Retirement System.

License taxes; deduction for out-of-state receipts. Provides that, for purposes of the license tax deduction for out-of-state receipts, such receipts shall be determined based upon the facts and circumstances of the taxpayer's business operation, without regard to the amount of income, receipts, or revenue ultimately computed as taxable under the methodology used by the state or country to which such receipts are attributable. The bill defines "income or other tax based upon income" as a net income tax, as defined in federal law, or, if the state or country to which such receipts are attributable does not have a net income tax as defined in federal law, a business activity tax such state or country does have, the measure of which is based in whole or in part on gross or net income or receipts.