89R9074 CJC-D
By: Troxclair H.B. No. 4057
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a taxing unit to enter into an
agreement to exempt from ad valorem taxation a portion of the value
of property on which a renewable energy facility is located or is
planned to be located.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 380, Local Government Code, is amended
by adding Section 380.005 to read as follows:
Sec. 380.005. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN
RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section,
"renewable energy facility" has the meaning assigned by Section
312.0022, Tax Code.
(b) This section applies only to a renewable energy facility
that sells energy or ancillary services at wholesale for a power
grid.
(c) The governing body of a municipality may not enter into
an agreement authorized by this chapter to exempt from ad valorem
taxation a portion of the value of real property on which a
renewable energy facility is located or is planned to be located
during the term of the agreement, or of tangible personal property
that is located or is planned to be located on the real property
during that term.
SECTION 2. Chapter 381, Local Government Code, is amended
by adding Section 381.006 to read as follows:
Sec. 381.006. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN
RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section,
"renewable energy facility" has the meaning assigned by Section
312.0022, Tax Code.
(b) This section applies only to a renewable energy facility
that sells energy or ancillary services at wholesale for a power
grid.
(c) A county, county industrial commission, or development
board may not enter into an agreement authorized by this chapter to
exempt from ad valorem taxation a portion of the value of real
property on which a renewable energy facility is located or is
planned to be located during the term of the agreement, or of
tangible personal property that is located or is planned to be
located on the real property during that term.
SECTION 3. Subchapter A, Chapter 312, Tax Code, is amended
by adding Section 312.0022 to read as follows:
Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN
RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section:
(1) "Qualifying battery energy storage facility"
means a facility at which is located an electrochemical device that
collects, stores, and discharges energy, other than a device that
collects, stores, and discharges energy generated from natural gas.
(2) "Renewable energy facility" means:
(A) a qualifying battery energy storage
facility;
(B) a solar power generation facility; or
(C) a wind power generation facility.
(3) "Solar power generation facility" means a facility
designed and used to convert the radiant energy from the sun into
thermal, mechanical, or electrical energy for distribution or sale.
(4) "Wind power generation facility" means a facility
designed and used to convert the energy available in the wind into
thermal, mechanical, or electrical energy for distribution or sale.
(b) This section applies only to a renewable energy facility
that sells energy or ancillary services at wholesale for a power
grid.
(c) The governing body of a taxing unit may not enter into an
agreement under this chapter to exempt from taxation a portion of
the value of real property on which a renewable energy facility is
located or is planned to be located during the term of the
agreement, or of tangible personal property that is located or is
planned to be located on the real property during that term.
SECTION 4. The changes in law made by this Act apply only to
an agreement entered into under Chapter 380 or 381, Local
Government Code, or Chapter 312, Tax Code, on or after the effective
date of this Act.
SECTION 5. This Act takes effect January 1, 2026.