Landgraf’s Generator Tax Break Skips Solar And Batteries

The text as introduced · 568 words

89R8195 CS-D

By: Landgraf
H.B. No. 3390

A BILL TO BE ENTITLED

AN ACT

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

the appraised value of real property that arises from the

installation or construction on the property of a generator that is

primarily for the production and distribution of energy for on-site

use.

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

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

adding Section 11.38 to read as follows:

Sec. 11.38. ELECTRIC GENERATORS. (a) In this section,

"electric generator" means a device that converts mechanical energy

to electrical energy and is:

(1) powered by natural gas, liquefied petroleum gas,

diesel fuel, biodiesel fuel, or hydrogen;

(2) fully enclosed in an integral

manufacturer-supplied sound attenuating enclosure; and

(3) connected to the main electrical panel of a

structure by a manual or automatic transfer switch.

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

the amount of appraised value of real property owned by the person

that arises from the installation or construction on the property

of an electric generator that is primarily for production and

distribution of energy for on-site use.

(c) The comptroller 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, 11.29, 11.30, 11.31, 11.315, 11.35, [ or ]

11.36, or 11.38 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. Section 11.38, Tax Code, as added by this Act,

applies only to an ad valorem tax year that begins on or after the

effective date of this Act.

SECTION 4. It is the intent of the 89th Legislature, Regular

Session, 2025, that the amendments made by this Act be harmonized

with another Act of the 89th Legislature, Regular Session, 2025,

relating to nonsubstantive additions to and corrections in enacted

codes.

SECTION 5. This Act takes effect January 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, authorizing the legislature to exempt from

ad valorem taxation the amount of the appraised value of real

property that arises from the installation or construction on the

property of a generator that is primarily for the production and

distribution of energy for on-site use is approved by the voters.

If that amendment is not approved by the voters, this Act has no

effect.