89R3748 MLH-F
By: Gervin-Hawkins H.B. No. 1483
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation of the amount of
the appraised value of certain residential real property that
arises from the installation in the property of certain energy
efficiency-related improvements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.272 to read as follows:
Sec. 11.272. ENERGY EFFICIENCY-RELATED IMPROVEMENTS TO
RESIDENTIAL REAL PROPERTY. (a) In this section, "energy
efficiency-related improvement" means an improvement or technology
that reduces the amount of energy needed to perform the basic
functions of a property, including:
(1) a high-efficiency heating, ventilation, and air
conditioning system;
(2) a central air conditioning demand response
technology;
(3) a high-efficiency heat pump;
(4) attic insulation;
(5) a radiant barrier;
(6) a smart thermostat;
(7) a high-efficiency water heater;
(8) an electric vehicle charging demand response
technology;
(9) high-efficiency windows; and
(10) the sealing or resealing of doors, windows, or
other openings.
(b) A person is entitled to an exemption from taxation of
the amount of the appraised value of residential real property
owned by the person that arises from the installation in the
property of an energy efficiency-related improvement if:
(1) the original construction of the property was
completed before January 1, 2011; and
(2) the improvement was installed on or after January
1, 2026.
(c) The comptroller, with the assistance of the State Energy
Conservation Office or its successor, shall develop guidelines to
assist local officials in the administration of this section.
SECTION 2. Section 11.43(c), Tax Code, is amended to read as
follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
11.254, 11.27, 11.271, 11.272, 11.29, 11.30, 11.31, 11.315, 11.35,
or 11.36, once allowed, need not be claimed in subsequent years, and
except as otherwise provided by Subsection (e), the exemption
applies to the property until it changes ownership or the person's
qualification for the exemption changes. However, except as
provided by Subsection (r), the chief appraiser may require a
person allowed one of the exemptions in a prior year to file a new
application to confirm the person's current qualification for the
exemption by delivering a written notice that a new application is
required, accompanied by an appropriate application form, to the
person previously allowed the exemption. If the person previously
allowed the exemption is 65 years of age or older, the chief
appraiser may not cancel the exemption due to the person's failure
to file the new application unless the chief appraiser complies
with the requirements of Subsection (q), if applicable.
SECTION 3. This Act applies beginning with the 2026 tax
year.
SECTION 4. This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, to authorize the legislature to provide for
an exemption from ad valorem taxation of the amount of the market
value of residential real property that arises from the
installation in the property of certain energy efficiency-related
improvements is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.