Relating to an exemption from ad valorem taxation of a renewable energy device, structure, facility, or system installed or constructed on residential property, land designated for agricultural use, or open-space land devoted to farm or ranch purposes for the generation of energy for use in connection with the property.
Impact
The implementation of HB 1751 is designed to encourage individuals and property owners to transition toward renewable energy by reducing the tax implications associated with their investments. The bill defines eligible renewable energy technologies, including solar power, wind power, and geothermal energy, thus promoting diverse forms of clean energy sources. This could provide significant financial relief for homeowners and small-scale agricultural operations that invest in renewable energy systems, therefore extending the use of sustainable energy practices in the region.
Summary
House Bill 1751 proposes the introduction of a tax exemption from ad valorem taxation for renewable energy devices, structures, facilities, or systems installed on residential properties and agricultural land. By establishing an exemption, the bill aims to incentivize the use of renewable energy resources in Texas, aiming to reduce the financial burdens on property owners who invest in renewable energy technologies. This exemption applies specifically to details outlined within the Tax Code regarding energy generated from various sustainable sources.
Contention
Despite the promising aspects of HB 1751, the legislative discussions around the bill may encounter contention regarding its potential impact on state and local revenue from property taxes. Some stakeholders may express concern that such tax exemptions could limit the revenues available to local governments, potentially affecting funding for public services. Additionally, there may be debates concerning the extent and interpretation of what constitutes a qualifying renewable energy device or system, leading to questions about administration and compliance with the new exemption guidelines.
Relating to the operation of certain wind-powered devices near certain aviation facilities and the receipt of certain ad valorem tax incentives for property on which such devices are constructed or installed; authorizing an administrative penalty.
Relating to the exemption from ad valorem taxation of certain assets used for agricultural production and to the authority of a county commissioners court to adopt an exemption from ad valorem taxation by each taxing unit that taxes the property of the portion of the appraised value of a person's property that is attributable to the installation in or on the property of certain water conservation systems.
Relating to an exemption from ad valorem taxation of the amount of the appraised value of real property that arises from the installation in the property of certain energy efficiency-related improvements.
Relating to a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.
Relating to a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.