Texas House Bill HB3586

Texas 2025 - 89th Regular

• Filed: 3/3/25

Caption

Relating to the authority of a taxing unit to enter into an agreement under the Property Redevelopment and Tax Abatement Act to exempt from ad valorem taxation a portion of the value of property on which a solar power facility is located or is planned to be located.

Impact

If enacted, HB3586 will have significant implications for the development of large-scale solar facilities in Texas. By limiting the ability of taxing units to provide tax incentives for properties designated for substantial solar energy production, the bill could influence the investment climate for renewable energy projects. Proponents may argue that this ensures a stable tax revenue base for local governments, while critics may contend that it hinders the growth of renewable energy sectors, potentially impacting Texas's goals for energy diversification and sustainability.

Summary

House Bill 3586 seeks to modify the authority of taxing units in Texas regarding property tax exemptions for solar power facilities. Specifically, the bill introduces a section to the Tax Code that prohibits these units from entering into agreements to exempt from taxation a portion of the value of properties that have or plan to have a generation or storage capacity of 10 megawatts or more. By applying these restrictions, the bill aims to regulate the fiscal landscape for large solar energy projects within the state.

Contention

Discussion around HB3586 has the potential to generate debate regarding the state’s commitment to expanding renewable energy resources. Advocates of the bill may claim that it seeks to prevent excessive tax incentives that could burden local budgets. Conversely, stakeholders in the renewable energy sector could view it as an obstacle to the deployment of solar technology, arguing that the lack of tax incentives would dissuade investment in new solar power projects. The bill represents a critical aspect of the ongoing dialogue on how to balance local taxation needs with the promotion of clean energy initiatives.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 312. Property Redevelopment And Tax Abatement Act
  • Section: New Section