| 1 | 1 | | 89R9074 CJC-D |
|---|
| 2 | 2 | | By: Troxclair H.B. No. 4057 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to the authority of a taxing unit to enter into an |
|---|
| 10 | 10 | | agreement to exempt from ad valorem taxation a portion of the value |
|---|
| 11 | 11 | | of property on which a renewable energy facility is located or is |
|---|
| 12 | 12 | | planned to be located. |
|---|
| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 14 | 14 | | SECTION 1. Chapter 380, Local Government Code, is amended |
|---|
| 15 | 15 | | by adding Section 380.005 to read as follows: |
|---|
| 16 | 16 | | Sec. 380.005. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN |
|---|
| 17 | 17 | | RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section, |
|---|
| 18 | 18 | | "renewable energy facility" has the meaning assigned by Section |
|---|
| 19 | 19 | | 312.0022, Tax Code. |
|---|
| 20 | 20 | | (b) This section applies only to a renewable energy facility |
|---|
| 21 | 21 | | that sells energy or ancillary services at wholesale for a power |
|---|
| 22 | 22 | | grid. |
|---|
| 23 | 23 | | (c) The governing body of a municipality may not enter into |
|---|
| 24 | 24 | | an agreement authorized by this chapter to exempt from ad valorem |
|---|
| 25 | 25 | | taxation a portion of the value of real property on which a |
|---|
| 26 | 26 | | renewable energy facility is located or is planned to be located |
|---|
| 27 | 27 | | during the term of the agreement, or of tangible personal property |
|---|
| 28 | 28 | | that is located or is planned to be located on the real property |
|---|
| 29 | 29 | | during that term. |
|---|
| 30 | 30 | | SECTION 2. Chapter 381, Local Government Code, is amended |
|---|
| 31 | 31 | | by adding Section 381.006 to read as follows: |
|---|
| 32 | 32 | | Sec. 381.006. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN |
|---|
| 33 | 33 | | RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section, |
|---|
| 34 | 34 | | "renewable energy facility" has the meaning assigned by Section |
|---|
| 35 | 35 | | 312.0022, Tax Code. |
|---|
| 36 | 36 | | (b) This section applies only to a renewable energy facility |
|---|
| 37 | 37 | | that sells energy or ancillary services at wholesale for a power |
|---|
| 38 | 38 | | grid. |
|---|
| 39 | 39 | | (c) A county, county industrial commission, or development |
|---|
| 40 | 40 | | board may not enter into an agreement authorized by this chapter to |
|---|
| 41 | 41 | | exempt from ad valorem taxation a portion of the value of real |
|---|
| 42 | 42 | | property on which a renewable energy facility is located or is |
|---|
| 43 | 43 | | planned to be located during the term of the agreement, or of |
|---|
| 44 | 44 | | tangible personal property that is located or is planned to be |
|---|
| 45 | 45 | | located on the real property during that term. |
|---|
| 46 | 46 | | SECTION 3. Subchapter A, Chapter 312, Tax Code, is amended |
|---|
| 47 | 47 | | by adding Section 312.0022 to read as follows: |
|---|
| 48 | 48 | | Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN |
|---|
| 49 | 49 | | RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section: |
|---|
| 50 | 50 | | (1) "Qualifying battery energy storage facility" |
|---|
| 51 | 51 | | means a facility at which is located an electrochemical device that |
|---|
| 52 | 52 | | collects, stores, and discharges energy, other than a device that |
|---|
| 53 | 53 | | collects, stores, and discharges energy generated from natural gas. |
|---|
| 54 | 54 | | (2) "Renewable energy facility" means: |
|---|
| 55 | 55 | | (A) a qualifying battery energy storage |
|---|
| 56 | 56 | | facility; |
|---|
| 57 | 57 | | (B) a solar power generation facility; or |
|---|
| 58 | 58 | | (C) a wind power generation facility. |
|---|
| 59 | 59 | | (3) "Solar power generation facility" means a facility |
|---|
| 60 | 60 | | designed and used to convert the radiant energy from the sun into |
|---|
| 61 | 61 | | thermal, mechanical, or electrical energy for distribution or sale. |
|---|
| 62 | 62 | | (4) "Wind power generation facility" means a facility |
|---|
| 63 | 63 | | designed and used to convert the energy available in the wind into |
|---|
| 64 | 64 | | thermal, mechanical, or electrical energy for distribution or sale. |
|---|
| 65 | 65 | | (b) This section applies only to a renewable energy facility |
|---|
| 66 | 66 | | that sells energy or ancillary services at wholesale for a power |
|---|
| 67 | 67 | | grid. |
|---|
| 68 | 68 | | (c) The governing body of a taxing unit may not enter into an |
|---|
| 69 | 69 | | agreement under this chapter to exempt from taxation a portion of |
|---|
| 70 | 70 | | the value of real property on which a renewable energy facility is |
|---|
| 71 | 71 | | located or is planned to be located during the term of the |
|---|
| 72 | 72 | | agreement, or of tangible personal property that is located or is |
|---|
| 73 | 73 | | planned to be located on the real property during that term. |
|---|
| 74 | 74 | | SECTION 4. The changes in law made by this Act apply only to |
|---|
| 75 | 75 | | an agreement entered into under Chapter 380 or 381, Local |
|---|
| 76 | 76 | | Government Code, or Chapter 312, Tax Code, on or after the effective |
|---|
| 77 | 77 | | date of this Act. |
|---|
| 78 | 78 | | SECTION 5. This Act takes effect January 1, 2026. |
|---|