Troxclair Bill Bars New Abatements For Solar, Wind And Storage

The text as introduced · 641 words

89R9074 CJC-D

By: Troxclair
H.B. No. 4057

A BILL TO BE ENTITLED

AN ACT

relating to the authority of a taxing unit to enter into an

agreement to exempt from ad valorem taxation a portion of the value

of property on which a renewable energy facility is located or is

planned to be located.

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

SECTION 1. Chapter 380, Local Government Code, is amended

by adding Section 380.005 to read as follows:

Sec. 380.005. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN

RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section,

"renewable energy facility" has the meaning assigned by Section

312.0022, Tax Code.

(b) This section applies only to a renewable energy facility

that sells energy or ancillary services at wholesale for a power

grid.

(c) The governing body of a municipality may not enter into

an agreement authorized by this chapter to exempt from ad valorem

taxation a portion of the value of real property on which a

renewable energy facility 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 2. Chapter 381, Local Government Code, is amended

by adding Section 381.006 to read as follows:

Sec. 381.006. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN

RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section,

"renewable energy facility" has the meaning assigned by Section

312.0022, Tax Code.

(b) This section applies only to a renewable energy facility

that sells energy or ancillary services at wholesale for a power

grid.

(c) A county, county industrial commission, or development

board may not enter into an agreement authorized by this chapter to

exempt from ad valorem taxation a portion of the value of real

property on which a renewable energy facility 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 3. 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

RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section:

(1) "Qualifying battery energy storage facility"

means a facility at which is located an electrochemical device that

collects, stores, and discharges energy, other than a device that

collects, stores, and discharges energy generated from natural gas.

(2) "Renewable energy facility" means:

(A) a qualifying battery energy storage

facility;

(B) a solar power generation facility; or

(C) a wind power generation facility.

(3) "Solar power generation facility" means a facility

designed and used to convert the radiant energy from the sun into

thermal, mechanical, or electrical energy for distribution or sale.

(4) "Wind power generation facility" means a facility

designed and used to convert the energy available in the wind into

thermal, mechanical, or electrical energy for distribution or sale.

(b) This section applies only to a renewable energy facility

that sells energy or ancillary services at wholesale for a power

grid.

(c) 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 renewable energy facility 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 4. The changes in law made by this Act apply only to

an agreement entered into under Chapter 380 or 381, Local

Government Code, or Chapter 312, Tax Code, on or after the effective

date of this Act.

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