Texas House Bill HJR144

Texas 2021 - 87th Regular

Caption

Proposing a constitutional amendment to authorize the legislature to provide for a credit against the ad valorem taxes imposed on property on which a solar energy device has been installed based on the cost of acquiring and installing the device.

Impact

Should this amendment be enacted, it will have significant implications for state tax laws regarding renewable energy. By enabling tax credits for solar energy installations, property owners may see a reduction in their overall tax burden, encouraging more individuals to invest in solar technology. This change in legislation is anticipated to stimulate the local economy by increasing demand for solar energy products and services, thereby creating jobs and fostering innovation within the energy sector.

Summary

HJR144 proposes a constitutional amendment that allows the Texas legislature to offer a credit against ad valorem taxes for property owners who install solar energy devices. This credit would be based on the cost incurred during the acquisition and installation of such devices, providing a potential financial incentive for homeowners and businesses to adopt renewable energy solutions. The intention is to promote the use of solar energy across the state, facilitating a transition to greener energy sources and contributing to environmental sustainability efforts.

Contention

There may be points of contention surrounding the implementation and scope of this tax credit. Questions regarding the credit's long-term sustainability, potential fiscal impact on state revenue, and the equitable distribution of benefits among property owners could arise in legislative discussions. Additionally, opponents may argue that while the intention is to support renewable energy adoption, the effectiveness and size of the tax credits must be carefully evaluated to ensure that they do not disproportionately favor wealthier property owners who can afford the upfront costs of solar installations.