Texas House Bill HJR19

Texas 2021 - 87th 1st C.S.

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

The proposal seeks to amend Article VIII of the Texas Constitution by adding Section 1-v, which would allow the legislature to define rules governing the tax credit. This could include formulas to calculate the credit amount and limitations on the number of years property owners can opt for the exemption. The change could significantly impact property law and tax equity, making solar installations more financially feasible for homeowners and businesses.

Summary

HJR19 is a joint resolution proposing a constitutional amendment that would authorize the Texas legislature to facilitate a credit against the ad valorem taxes on properties where solar energy devices have been installed. This credit is intended to be based on the costs incurred by property owners for the acquisition and installation of these solar devices. If passed, this amendment would provide an additional financial incentive for property owners to invest in solar energy, promoting energy independence and sustainability across the state.

Contention

While the introduction of HJR19 may foster growth in the renewable energy sector, it could also raise concerns regarding the implications for state tax revenues. Critics might contend that tax credits could reduce the funds available for public services. Additionally, there might be discussions around the fairness of incentivizing solar installation for certain demographics over others, as not all property owners may have equal access to solar technologies or the initial capital to invest in such installations.