Texas House Bill HB3795

Texas 2021 - 87th Regular

Caption

Relating to the exemption from ad valorem taxation for certain solar or wind-powered energy devices.

Impact

The implications of HB 3795 could be significant for both residential and commercial property owners looking to harness renewable energy. By clarifying existing tax provisions, the bill makes it easier for more individuals to invest in renewable energy facilities without facing the overhead of property taxes on the energy devices. As such, this could lead to increased adoption of solar and wind energy solutions across Texas, aligning with broader state and national goals of promoting sustainable energy use.

Summary

House Bill 3795 aims to amend the existing Texas Tax Code to provide exemptions from ad valorem taxation for certain solar or wind-powered energy devices. Notably, this bill allows owners of these energy devices to receive tax exemptions regardless of whether they own the real property on which the devices are installed. This legislative change promotes the use of renewable energy sources by reducing the financial burden on individuals and businesses investing in solar or wind technology.

Contention

While the bill is primarily aimed at fostering renewable energy, there could be points of contention regarding the potential loss of tax revenue for local governments from these exemptions. Critics may argue that while the bill promotes green energy, it may also lead to budgetary constraints for municipalities that rely on property taxes for funding public services. Moreover, stakeholders in the traditional energy sector may view the bill as an unfair advantage for renewable energy over fossil fuels.