Texas House Bill HB2500

Texas 2013 - 83rd Regular

Caption

Relating to the appraisal for ad valorem tax purposes of solar energy property.

Impact

The bill's approach to solar energy property valuation aims to create a supportive framework for the solar energy industry in Texas. By setting clear guidelines for how solar properties should be appraised for tax purposes, it helps stakeholders in the solar industry know what to expect financially concerning local taxation. By doing this, the bill intends to bolster the growth of solar energy installations in the state, encouraging both investment and adoption of renewable energy technology among commercial entities.

Summary

House Bill 2500 focuses on the appraisal for ad valorem tax purposes of solar energy property in Texas. The bill mandates that the chief appraiser shall utilize the cost method for determining the market value of such solar energy properties, which is defined to include solar energy devices used for commercial purposes, commercial storage devices, power conditioning equipment, and parts necessary for these devices and equipment. This law applies solely to solar energy installations that are constructed or installed after January 1, 2014.

Contention

There may be discussions surrounding the bill addressing concerns related to the specifics of its implementation and how it would translate in practical terms for local tax revenues. Some stakeholders might argue about the implications of lowering the tax burden on solar energy properties and how that might affect overall taxation levels for other property types within the jurisdiction. Additionally, there could be varying opinions about the adequacy of a 10-year useful life projection for depreciation purposes, with some possibly advocating for longer periods based on technological advancements and longevity of solar installations.