| 1 | 1 | | 86R9205 JES-F |
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| 2 | 2 | | By: Hall S.B. No. 1617 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the eligibility of certain property for certain ad |
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| 8 | 8 | | valorem tax incentives if certain renewable energy devices are |
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| 9 | 9 | | installed or constructed on the property. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter A, Chapter 312, Tax Code, is amended |
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| 12 | 12 | | by adding Section 312.0022 to read as follows: |
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| 13 | 13 | | Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON |
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| 14 | 14 | | PROPERTY WITH CERTAIN RENEWABLE ENERGY DEVICES INSTALLED OR |
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| 15 | 15 | | CONSTRUCTED. (a) In this section: |
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| 16 | 16 | | (1) "Solar energy device" has the meaning assigned by |
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| 17 | 17 | | Section 11.27. |
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| 18 | 18 | | (2) "Wind-powered energy device" has the meaning |
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| 19 | 19 | | assigned by Section 11.27. |
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| 20 | 20 | | (b) Notwithstanding any other provision of this chapter, an |
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| 21 | 21 | | owner or lessee of a parcel of real property that is located wholly |
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| 22 | 22 | | or partly in a reinvestment zone may not receive an exemption from |
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| 23 | 23 | | taxation of any portion of the value of the parcel of real property |
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| 24 | 24 | | or of tangible personal property located on the parcel of real |
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| 25 | 25 | | property under a tax abatement agreement under this chapter that is |
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| 26 | 26 | | entered into on or after September 1, 2019, if, on or after that |
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| 27 | 27 | | date, a solar energy device or wind-powered energy device is |
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| 28 | 28 | | installed or constructed on the same parcel of real property. The |
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| 29 | 29 | | prohibition provided by this section applies regardless of whether |
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| 30 | 30 | | the solar energy device or wind-powered energy device is installed |
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| 31 | 31 | | or constructed at a location that is in the reinvestment zone. |
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| 32 | 32 | | SECTION 2. Section 313.024(b), Tax Code, is amended to read |
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| 33 | 33 | | as follows: |
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| 34 | 34 | | (b) To be eligible for a limitation on appraised value under |
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| 35 | 35 | | this subchapter, the entity must use the property for: |
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| 36 | 36 | | (1) manufacturing; |
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| 37 | 37 | | (2) research and development; |
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| 38 | 38 | | (3) a clean coal project, as defined by Section 5.001, |
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| 39 | 39 | | Water Code; |
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| 40 | 40 | | (4) an advanced clean energy project, as defined by |
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| 41 | 41 | | Section 382.003, Health and Safety Code; |
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| 42 | 42 | | (5) [renewable energy electric generation; |
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| 43 | 43 | | [(6)] electric power generation using integrated |
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| 44 | 44 | | gasification combined cycle technology; |
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| 45 | 45 | | (6) [(7)] nuclear electric power generation; |
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| 46 | 46 | | (7) [(8)] a computer center primarily used in |
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| 47 | 47 | | connection with one or more activities described by Subdivisions |
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| 48 | 48 | | (1) through (6) [(7)] conducted by the entity; or |
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| 49 | 49 | | (8) [(9)] a Texas priority project. |
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| 50 | 50 | | SECTION 3. Section 313.024(e)(2), Tax Code, is repealed. |
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| 51 | 51 | | SECTION 4. The change in law made by this Act applies only |
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| 52 | 52 | | to an agreement entered into under Chapter 313, Tax Code, on or |
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| 53 | 53 | | after the effective date of this Act. An agreement entered into |
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| 54 | 54 | | under that chapter before the effective date of this Act is governed |
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| 55 | 55 | | by the law in effect on the date the agreement was entered into, and |
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| 56 | 56 | | the former law is continued in effect for that purpose. |
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| 57 | 57 | | SECTION 5. This Act takes effect September 1, 2019. |
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