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