Texas House Bill HB880

Texas 2009 - 81st Regular

Caption

Relating to the exemption from ad valorem taxation of certain energy efficiency-related improvements to real or personal property.

Impact

If enacted, HB 880 would significantly impact state laws regarding property taxation, making it more advantageous for property owners to invest in energy-efficient upgrades. The bill mandates that the Texas comptroller, with the help of the State Energy Conservation Office, develops guidelines to facilitate local officials in administering these tax exemptions. This could lead to a broader adoption of energy-saving measures by property owners, which aligns with state goals for sustainability and reduced carbon footprints.

Summary

House Bill 880 seeks to enhance energy efficiency in Texas by providing exemptions from ad valorem taxation for certain improvements related to energy efficiency made to both real and personal property. This legislation proposes that property owners can be exempt from taxation on the appraised value that arises from the installation of energy-efficient upgrades. These improvements must be permanently attached to or incorporated into the property to qualify for the exemption.

Contention

While proponents of HB 880 argue that this bill will encourage investments in energy efficiency and reduce overall energy costs for consumers, there may be some contention surrounding the bill. Critics could express concerns about the potential loss of tax revenue for local governments that might result from widespread exemptions. Additionally, there might be debates over what constitutes an 'energy efficiency-related improvement' and how that is defined and regulated at the local level, as well as concerns about the administrative burdens placed on local officials in implementing these guidelines.