Texas Senate Bill SB1256

Texas 2021 - 87th Regular

Caption

Relating to the eligibility of certain property for an ad valorem tax abatement under the Property Redevelopment and Tax Abatement Act if certain renewable energy devices are installed or constructed on the property.

Impact

The passing of SB1256 could significantly impact the future development of renewable energy sources in Texas. By limiting the eligibility of properties with renewables for tax abatements, the bill may deter potential investments in solar and wind energy installations on properties seeking financial incentives. This change effectively removes an economic incentive for property owners to adopt renewable energy technologies, which could influence the growth of the renewable energy sector within the state.

Summary

Senate Bill 1256 addresses the eligibility of certain properties for ad valorem tax abatements in conjunction with the installation or construction of renewable energy devices, specifically solar and wind-powered devices. The bill amends Subchapter A of Chapter 312 of the Texas Tax Code, establishing that properties located within reinvestment zones that have solar or wind energy devices installed after September 1, 2021, will not qualify for tax abatement under agreements made after this date. This effectively prohibits tax exemptions for properties utilizing these renewable energy sources, regardless of their location in the reinvestment zone.

Contention

Opponents of SB1256 may argue that the prohibition of tax abatements for properties with renewable energy installations is counterproductive to the state's goals of promoting sustainable energy solutions and reducing greenhouse gas emissions. They may contend that by disincentivizing the adoption of solar and wind technologies, Texas could fall behind in the transition to green energy sources, which is vital for environmental protection and sustainability. Supporters of the bill might argue that it helps to streamline tax incentives and focuses public resources away from projects that may not align with core economic objectives.