Texas House Bill HB2746

Texas 2015 - 84th Regular

Caption

Relating to the treatment for ad valorem tax purposes of pollution control property.

Impact

The changes proposed by HB2746 are significant for entities operating within Texas that implement pollution control measures. By potentially lowering the tax liabilities for businesses that invest in these environmentally-friendly technologies, the bill encourages compliance with environmental standards. This alignment with state and federal environmental regulations is expected to promote a healthier ecological balance and improve compliance rates among businesses towards pollution reduction. The measure could also lead to improved public perception of companies actively engaged in pollution control efforts, enhancing their corporate social responsibility (CSR) profiles.

Summary

House Bill 2746 addresses the treatment of pollution control property for ad valorem tax purposes in Texas. The bill amends existing tax code provisions to clarify and enhance the criteria under which properties used for pollution control can receive tax exemptions. Specifically, it allows for property that is used wholly or partly for controlling air, water, or land pollution to qualify for tax exemptions, while also defining what constitutes pollution control property more comprehensively. This bill aims to incentivize the installation of pollution control technologies and practices by reducing the tax burden associated with such investments.

Contention

However, it is important to note that there may be contention surrounding the specifics of the implementation of these exemptions. Critics may argue that the criteria for qualifying as pollution control property should be scrutinized to ensure they do not unintentionally benefit businesses that do not significantly reduce pollution. Additionally, concerns may arise about the equitable distribution of tax benefits and whether smaller businesses will have equal access to these exemptions compared to larger corporations, possibly leading to disparities in the competitive landscape. The operational guidelines set forth by the Texas Commission on Environmental Quality will also play a critical role in how broadly or narrowly the exemptions are applied.