Energy storage systems; definitions, tax exemption, revenue share for systems. (HB2006)

Introduced By

Del. Steve Heretick (D-Portsmouth) with support from co-patrons Del. Carrie Coyner (R-Chesterfield), Del. Kaye Kory (D-Falls Church), Del. Roslyn Tyler (D-Jarratt), and Sen. Scott Surovell (D-Mount Vernon)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Tax exemptions for energy storage systems. Declares that energy storage systems are included in the definition of certified pollution control equipment and facilities, making energy storage systems exempt from state and local taxation. The bill defines "energy storage system" as equipment, facilities, or devices that are capable of absorbing energy, storing it for a period of time, and redelivering that energy after it has been stored. The tax exemption applies only to certain projects with alternating current (AC) storage capacity of more than five megawatts and less than 150 megawatts. The bill also allows localities to assess a revenue share of up to $1,400 per megawatt on energy storage systems. The bill provides that on July 1, 2026, and every five years thereafter, the maximum amount of the revenue share that a locality may impose on energy storage systems as well as certain solar energy projects shall be increased by 10 percent. No increase may be made to any revenue share imposed by a locality on a solar energy project or energy storage systems for which an application has been filed with the locality and such application has been approved prior to January 1, 2021. The bill defines energy storage systems as electric suppliers whose property shall be assessed by the State Corporation Commission. This bill is identical to SB 1201. Read the Bill »


03/11/2021: signed by governor


01/11/2021Prefiled and ordered printed; offered 01/13/21 21101104D
01/11/2021Referred to Committee on Finance
01/16/2021Assigned Finance sub: Subcommittee #1
01/20/2021Impact statement from TAX (HB2006)
01/25/2021House subcommittee amendments and substitutes offered
01/25/2021Subcommittee recommends reporting with substitute (10-Y 0-N)
01/27/2021Reported from Finance with substitute (19-Y 2-N) (see vote tally)
01/27/2021Committee substitute printed 21103350D-H1
01/28/2021Read first time
01/29/2021Read second time
01/29/2021Committee substitute agreed to 21103350D-H1
01/29/2021Engrossed by House - committee substitute HB2006H1
02/01/2021Read third time and passed House (88-Y 11-N 1-A)
02/01/2021VOTE: Passage (88-Y 11-N 1-A) (see vote tally)
02/02/2021Constitutional reading dispensed
02/02/2021Referred to Committee on Finance and Appropriations
02/05/2021Continued to 2021 Sp. Sess. 1 in Finance and Appropriations (16-Y 0-N) (see vote tally)
02/10/2021Impact statement from SCC (HB2006H1)
02/16/2021Reported from Finance and Appropriations (13-Y 0-N) (see vote tally)
02/16/2021Constitutional reading dispensed (37-Y 0-N) (see vote tally)
02/17/2021Read third time
02/17/2021Passed Senate (37-Y 1-N 1-A) (see vote tally)
02/22/2021Bill text as passed House and Senate (HB2006ER)
02/22/2021Signed by President
02/23/2021Impact statement from SCC (HB2006ER)
02/24/2021Signed by Speaker
02/25/2021Enrolled Bill communicated to Governor on February 25, 2021
02/25/2021G Governor's Action Deadline 11:59 p.m., March 31, 2021
03/11/2021G Approved by Governor-Chapter 49 (effective 7/1/21)
03/11/2021G Acts of Assembly Chapter text (CHAP0049)