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HB1372 • 2026

Solar energy facilities; prevailing wage & apprenticeship requirements, state & local tax exemption.

<p class=ldtitle>A BILL to amend the Code of Virginia by adding in Chapter 3 of Title 40.1 an article numbered 1.2, consisting of sections numbered 40.1-28.13 through 40.1-28.16 and by adding a section numbered 58.1-3661.1, relating to solar energy facility work; prevailing wage rate; apprenticeship requirements; civil penalties; state and local tax exemption; report.</p>

Energy Labor Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Helmer
Last action
2026-02-13
Official status
Continued
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on how the tax exemptions will be implemented or their potential impacts.

Solar Energy Facility Regulations

This bill sets wage and apprenticeship requirements for solar energy facility work and provides tax exemptions for such facilities.

What This Bill Does

  • Requires solar developers to pay workers the prevailing wage rate set by the Department of Labor and Industry.
  • Requires solar developers to ensure that at least 15% of labor hours are performed by qualified apprentices starting July 1, 2027.
  • Imposes civil penalties on solar developers who do not comply with wage or apprenticeship requirements.
  • Exempts certified solar generation facilities from state and local taxes under Virginia's Constitution.

Who It Names or Affects

  • Solar energy facility developers
  • Workers employed by solar energy facility developers

Terms To Know

Prevailing wage rate
The standard pay for workers in a specific job and location.
Qualified apprentice
A worker participating in an approved apprenticeship program.

Limits and Unknowns

  • The bill does not apply to solar energy facility work under contracts entered into before July 1, 2026.
  • Details about the tax exemption's implementation and impact are unclear from the provided text.

Bill History

  1. 2026-02-13 Commerce Agriculture & Natural Resources

    Assigned HAPP sub: Commerce Agriculture & Natural Resources

  2. 2026-02-13 Labor and Commerce

    Committee substitute printed 26106899D-H1

  3. 2026-02-13 Labor and Commerce

    Fiscal Impact Statement from Department of Planning and Budget (HB1372)

  4. 2026-02-13 Appropriations

    Continued to 2027 in Appropriations (Voice Vote)

  5. 2026-02-13 Commerce Agriculture & Natural Resources

    Subcommittee recommends continuing to 2027 (Voice Vote)

  6. 2026-02-12 Labor and Commerce

    Reported from Labor and Commerce with substitute and referred to Appropriations (13-Y 7-N)

  7. 2026-02-12 Subcommittee #2

    Subcommittee recommends reporting with substitute and referring to Appropriations (5-Y 2-N)

  8. 2026-02-12 Subcommittee #2

    House subcommittee offered

  9. 2026-01-27 Subcommittee #2

    Assigned HCL sub: Subcommittee #2

  10. 2026-01-20 House

    Presented and ordered printed 26104995D

  11. 2026-01-20 Labor and Commerce

    Referred to Committee on Labor and Commerce

Official Summary Text

Solar energy facilities; prevailing wage and apprenticeship requirements; state and local tax exemption; report; civil penalties.
Requires each solar developer, including its contractors and subcontractors, to ensure payment at the prevailing wage rate set by the Department of Labor and Industry for any mechanic, laborer, or worker employed, retained, or otherwise hired to perform construction, maintenance, or repair work for certain electricity generating sources. The bill requires each solar developer to (i) ensure that a percentage of the total labor hours of such work is performed by qualified apprentices and (ii) employ at least one qualified apprentice if four or more individuals are employed to perform such work. Under the bill, a solar developer that fails to meet the requirements of its provisions is required to make penalty payments to the Commissioner of Labor and Industry.

Additionally, the bill provides that any certified solar generation facility, as defined in the bill, is declared a separate class of property and shall be classified for local taxation separately from other classifications of real or personal property. Such facilities shall be wholly exempt from state and local taxation under the Constitution of Virginia.

Current Bill Text

Read the full stored bill text
HOUSE BILL NO. 1372

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the House Committee on Labor and Commerce

on February 12, 2026)

(Patron Prior to Substitute--Delegate Helmer)

A BILL to amend the Code of Virginia by adding in Chapter 3 of Title 40.1 an article numbered 1.2, consisting of sections numbered
40.1-28.13
through
40.1-28.16
, relating to solar energy facility work; prevailing wage rate; apprenticeship requirements; civil penalties; report.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 3 of Title 40.1 an article numbered 1.2, consisting of sections numbered
40.1-28.13
through
40.1-28.16
as follows:

Article 1.2.

Prevailing Wage for

Solar Energy Facility
Work
.

§
40.1-28.13
. Definitions.

As used in this article
, unless the context requires a different meaning
:

"Prevailing wage rate" means the rate, amount, or level of wages, salaries, benefits, and other remuneration prevailing for the corresponding class of mechanics, laborers, or workers employed for the same work in the same trade or occupation in the locality where the facility or immovable property that is the subject of
solar energy facility
work is located, as determined by the Commissioner
in accordance
with §
2.2-4321.3
.

"Solar developer"
means any
developer of a solar energy facility
, including
any electric utility
as defined in
§

56-576
and
any
person
required to be
licensed
under the provisions of §
56-587
,
and any of its contractors or
subcontractors.

"Solar
energy facility
" means
a

renewable energy
project
that (i) generates electricity from sunlight, consisting of one or more PV systems and other appurtenant structures and facilities within the boundaries of the site and (ii) is designed for, or capable of, operation at a rated capacity
of

no less
than
one

megawatt
.
"Solar energy facility" includes t
wo or more solar energy
facilities
otherwise spatially separated but under common ownership or operational control
that
are connected to the electrical grid under a single interconnection agreement.

"Solar energy facility work" means construction, alteration, or repair of
a solar energy facility
.

§
40.1-28.14
. Prevailing wage rate for
solar energy facility
work;
civil
penalties.

A. Each
solar
developer
, when procuring services, letting contracts, or overseeing or administering contracts for construction, alteration, or repair of a solar energy facility, shall ensure that its bid specifications or other contracts applicable to construction, alteration, or repair of such
solar energy facility
require bidders, offerors, contractors, and subcontractors to pay wages, salaries, benefits, and other remuneration to any mechanic, laborer, or worker employed, retained, or otherwise hired to perform services in connection with the contract at the prevailing wage rate. Each contract for construction, alteration, or repair of a
solar energy facility
with over one megawatt of generating capacity by a public service company or third-party developer shall contain a provision requiring that the remuneration to any individual performing the work of any mechanic, laborer, or worker on the work contracted to be done shall be at a rate equal to the prevailing wage rate.

B. In addition to liability for the nonpayment of wages provided in §
40.1-29
, a
ny
solar
developer

that fails to comply with the requirements of this section shall be required to make a payment to the Commissioner of Labor and Industry of $5,000 for each employee who was paid wages at a rate less than the prevailing wage rate. However, if the Commissioner of Labor and Industry determines that
such
solar developer's
failure to comply with the requirements of this section is due to intentional disregard of the provisions of this
section
,
such
solar
developer
shall be required to make a payment to the Commissioner of Labor and Industry of $10,000 for each employee who was paid wages at a rate less than the prevailing wage rate.
Civil penalties owed under this section shall be paid to the Commissioner for deposit in the general fund and the Commissioner shall prescribe procedures for the payment of propose
d assessments of civil penalties that are not contested by employers.

§
40.1-28.15
. Apprenticeship requirements;
civil
penalties.

A.
As used in this section, "qualified apprentice" means an individual who is employed by a solar developer and who is participating in a registered apprenticeship program pursuant to Article 3 (§
2.2-2043
et seq.) of Chapter 20.2 of Title 2.2.

B.
Each
solar developer

engaged in the construction, alteration, or repair of
solar energy facilities
shall ensure that
, beginning
July 1, 2027, 15 percent

of the total labor hours of the construction, alteration, or repair work, including such work performed by any contractor or subcontractor
,

is performed by qualified apprentices.

C
. Each
solar
developer that employs four or more individuals to perform construction, alteration, or repair work with respect to
a solar energy facility
shall employ at least one qualified apprentice to perform such work.

D
. The requirements of this section shall be deemed satisfied if
the solar
developer has requested qualified apprentices from a registered apprenticeship program and (i) such request is denied, provided such denial is not the result of a refusal by the
solar
developer or its contractor or subcontractor to comply with the established standards or requirements of the registered apprenticeship program or (ii) the registered apprenticeship program fails to respond to such request within five business days of receiving such request.

E
. A
solar
developer that fails to meet the requirements of this section shall make a payment to the Commissioner of Labor and Industry of $50 for each labor hour in which the requirements of this section were not met. However, if the Commissioner of Labor and Industry determines that
the solar
developer's failure to comply with the requirements of this section is due to intentional disregard of the provisions of this
section
, the
solar
developer shall be required to make a payment to the Commissioner of Labor and Industry of $500 for each labor hour in which the requirements of this section were not met.
Civil penalties owed under this section shall be paid to the Commissioner for deposit in the general fund and the Commissioner shall prescribe procedures for the payment of proposed assessments of civil penalties that are not contested by employers.

§
40.1-28.1
6
.
Annual r
eport
.

A solar developer

shall
submit

a
n annual report
to the
Commissioner
detailing its compliance with the provisions of this articl
e
, in the form and manner determined by the Commissioner
, for each of its solar energy facilities
.

2. That the provisions of Article 1.2 (§
40.1-28.13
et seq.) of Chapter 3 of Title 40.1 of the Code of Virginia, as created by this act, shall apply only to solar energy facility work, as defined in §
40.1-28.13
of the Code of Virginia, as created by this act, performed pursuant to a construction contract entered into by a solar developer, as defined in §
40.1-28.13
of the Code of Virginia, as created by this act, that is performed under a contract that is entered into on or after July 1, 2026
,
and shall not apply to any solar energy facility work for which a binding construction contract, power purchase agreement, or interconnection agreement was entered into prior to July 1, 2026.