Land With A Wind Turbine Loses Ag Appraisal In 2026

The text as introduced · 1,007 words

89R8321 RDS-D

By: Money
H.B. No. 4004

A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of property for certain ad valorem tax

incentives if a wind-powered energy device or a solar energy device

has been installed or constructed on the property.

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

SECTION 1. 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, 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 2. Section 23.42, Tax Code, is amended by adding

Subsection (a-1) to read as follows:

(a-1) Notwithstanding Subsection (a), land on which a

wind-powered energy device as defined by Section 23.51 is located

may not be designated for agricultural use under this section.

SECTION 3. Section 23.51, Tax Code, is amended by adding

Subdivision (9) to read as follows:

(9) "Wind-powered energy device" means an apparatus

designed or adapted to:

(A) convert the energy available in the wind into

thermal, mechanical, or electrical energy;

(B) store the converted energy described by

Paragraph (A), either in the form to which originally converted or

another form; or

(C) distribute the converted energy described by

Paragraph (A).

SECTION 4. Section 23.56, Tax Code, is amended to read as

follows:

Sec. 23.56. LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE

LAND. Land is not eligible for appraisal as provided by this

subchapter if:

(1) the land is located inside the corporate limits of

an incorporated city or town, unless:

(A) the city or town is not providing the land

with governmental and proprietary services substantially

equivalent in standard and scope to those services it provides in

other parts of the city or town with similar topography, land

utilization, and population density;

(B) the land has been devoted principally to

agricultural use continuously for the preceding five years; or

(C) the land:

(i) has been devoted principally to

agricultural use or to production of timber or forest products

continuously for the preceding five years; and

(ii) is used for wildlife management;

(2) the land is owned by an individual who is a

nonresident alien or by a foreign government if that individual or

government is required by federal law or by rule adopted pursuant to

federal law to register his ownership or acquisition of that

property; [ or ]

(3) the land is owned by a corporation, partnership,

trust, or other legal entity if the entity is required by federal

law or by rule adopted pursuant to federal law to register its

ownership or acquisition of that land and a nonresident alien or a

foreign government or any combination of nonresident aliens and

foreign governments own a majority interest in the entity ; or

(4) a wind-powered energy device is located on the

land .

SECTION 5. Section 312.0021(a)(2), Tax Code, is amended to

read as follows:

(2) "Wind-powered energy device" has the meaning

assigned by Section 23.51 [ 11.27 ].

SECTION 6. Subchapter A, Chapter 312, Tax Code, is amended

by adding Section 312.0022 to read as follows:

Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN

PROPERTY INCLUDING A WIND-POWERED ENERGY DEVICE. (a) In this

section, "wind-powered energy device" has the meaning assigned by

Section 23.51.

(b) The governing body of a taxing unit may not enter into an

agreement under this chapter to exempt from taxation a portion of

the value of real property on which a wind-powered energy device is

located or is planned to be located during the term of the

agreement, or of tangible personal property that is located or is

planned to be located on the real property during that term.

SECTION 7. Sections 11.27 and 23.26, Tax Code, are

repealed.

SECTION 8. The repeal by this Act of Sections 11.27 and

23.26, Tax Code, and the changes in law made by this Act to Sections

11.43, 23.42, 23.56, and 312.0021(a)(2), Tax Code, apply only to an

ad valorem tax year that begins on or after the effective date of

this Act.

SECTION 9. Section 312.0022, Tax Code, as added by this Act,

applies only to an agreement entered into under Chapter 312, Tax

Code, on or after the effective date of this Act.

SECTION 10. It is the intent of the 89th Legislature,

Regular Session, 2025, that the amendments made by this Act to

Section 11.43(c), Tax Code, be harmonized with another Act of the

89th Legislature, Regular Session, 2025, relating to

nonsubstantive additions to and corrections in enacted codes.

SECTION 11. (a) Except as provided by Subsection (b) of this

section, this Act takes effect January 1, 2026.

(b) Section 2 of this Act takes effect January 1, 2026, but

only if the constitutional amendment proposed by the 89th

Legislature, Regular Session, 2025, to prohibit land from being

appraised for ad valorem tax purposes only on the basis of its

agricultural use if a wind-powered energy device has been installed

or constructed on the land is approved by the voters. If that

amendment is not approved by the voters, Section 2 of this Act has

no effect.