bill exempting energy efficiency upgrades from property tax

The text as introduced · 547 words

89R3748 MLH-F

By: Gervin-Hawkins
H.B. No. 1483

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation of the amount of

the appraised value of certain residential real property that

arises from the installation in the property of certain energy

efficiency-related improvements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by

adding Section 11.272 to read as follows:

Sec. 11.272. ENERGY EFFICIENCY-RELATED IMPROVEMENTS TO

RESIDENTIAL REAL PROPERTY. (a) In this section, "energy

efficiency-related improvement" means an improvement or technology

that reduces the amount of energy needed to perform the basic

functions of a property, including:

(1) a high-efficiency heating, ventilation, and air

conditioning system;

(2) a central air conditioning demand response

technology;

(3) a high-efficiency heat pump;

(4) attic insulation;

(5) a radiant barrier;

(6) a smart thermostat;

(7) a high-efficiency water heater;

(8) an electric vehicle charging demand response

technology;

(9) high-efficiency windows; and

(10) the sealing or resealing of doors, windows, or

other openings.

(b) A person is entitled to an exemption from taxation of

the amount of the appraised value of residential real property

owned by the person that arises from the installation in the

property of an energy efficiency-related improvement if:

(1) the original construction of the property was

completed before January 1, 2011; and

(2) the improvement was installed on or after January

1, 2026.

(c) The comptroller, with the assistance of the State Energy

Conservation Office or its successor, shall develop guidelines to

assist local officials in the administration of this section.

SECTION 2. Section 11.43(c), Tax Code, is amended to read as

follows:

(c) An exemption provided by Section 11.13, 11.131, 11.132,

11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,

11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,

11.254, 11.27, 11.271, 11.272, 11.29, 11.30, 11.31, 11.315, 11.35,

or 11.36, once allowed, need not be claimed in subsequent years, and

except as otherwise provided by Subsection (e), the exemption

applies to the property until it changes ownership or the person's

qualification for the exemption changes. However, except as

provided by Subsection (r), the chief appraiser may require a

person allowed one of the exemptions in a prior year to file a new

application to confirm the person's current qualification for the

exemption by delivering a written notice that a new application is

required, accompanied by an appropriate application form, to the

person previously allowed the exemption. If the person previously

allowed the exemption is 65 years of age or older, the chief

appraiser may not cancel the exemption due to the person's failure

to file the new application unless the chief appraiser complies

with the requirements of Subsection (q), if applicable.

SECTION 3. This Act applies beginning with the 2026 tax

year.

SECTION 4. This Act takes effect January 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, to authorize the legislature to provide for

an exemption from ad valorem taxation of the amount of the market

value of residential real property that arises from the

installation in the property of certain energy efficiency-related

improvements is approved by the voters. If that amendment is not

approved by the voters, this Act has no effect.