Delegate Elizabeth Lovejoy introduced House Bill 2,685 to the House Finance Subcommittee No. 1, proposing a five‑year moratorium on the retail sales and use tax exemption for computer equipment purchased or leased for data‑center use in Planning District 8 (Northern Virginia). The bill, Lovejoy said, responds to a recent JLARC (Joint Legislative Audit and Review Commission) study that identified policy levers—including the sales‑tax incentive—that could be used to reduce pressure from rapid data‑center growth in that region.

The bill’s sponsor framed the measure as geographically targeted to Northern Virginia only. "Given the results of the JLARC study which showed rate payers would be responsible for increased rates brought on by the industry related to transmission lines and increased power demand, we make sure data centers particularly in Virginia continue to pay their fair share," Delegate Lovejoy said.

The committee adopted a single‑word technical amendment after the patron said stakeholders requested a narrower trigger point. The amendment strikes the word "constructed" and replaces it with "permitted," changing the bill to apply to data centers that are permitted after the effective date rather than those merely in some stage of construction. The amendment was "moved and properly seconded to adopt the amendment" and was adopted with vocal assent by the committee.

Industry groups and local labor unions gave oral testimony during the public comment period. Josh Levy of the Data Center Coalition cited JLARC numbers that the industry supports tens of thousands of jobs and billions in capital investment, and urged the committee not to advance legislation that would "interject substantial uncertainty" into projects already under memoranda of understanding. "JLARC found in their study that data centers contribute annually 74,000 jobs, $5,500,000,000 in labor income," Levy said.

Unions and local chambers of commerce likewise warned of local economic impacts. Don Slaiman of Local 26 Electricians said the incentive helped spur large employment gains in his jurisdiction, adding, "These are fantastic jobs. We've grown by 7,000 members making 6 figures because of this industry." Scott Pedowitz of the Apartment and Office Building Association said data centers had helped offset weakness in the office market and opposed the bill for that reason.

Delegate Lovejoy and supporters said the bill is designed to slow new development in Region 8 only and to preserve discretionary policy levers identified by JLARC; opponents said it would penalize projects undertaken in reliance on an existing incentive and risk jobs and local investment.

The bill remained before the committee for consideration after testimony; the amendment described above was adopted. No final committee vote on reporting or referral is recorded in the transcript.