81R5818 SMH-D

By: Leibowitz H.B. No. 1751

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation of a renewable energy device, structure, facility, or system installed or constructed on residential property, land designated for agricultural use, or open-space land devoted to farm or ranch purposes for the generation of energy for use in connection with the property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by adding Section 11.34 to read as follows:

Sec. 11.34. RENEWABLE ENERGY DEVICE, STRUCTURE, FACILITY, OR SYSTEM INSTALLED ON RESIDENTIAL PROPERTY OR AGRICULTURAL LAND. (a) In this section, "renewable energy device, structure, facility, or system" means:

(1) a device, structure, facility, or system that generates electricity using energy derived from:

(A) solar power;

(B) wind power;

(C) a fuel cell;

(D) methane gas from a landfill;

(E) ocean thermal power;

(F) wave or tidal power;

(G) a low emission advanced renewable energy conversion technology;

(H) hydropower, provided that the facility:

(i) is a run-of-the-river hydropower facility;

(ii) has a generating capacity of not more than five megawatts; and

(iii) does not cause an appreciable change in the river flow; or

(I) biomass, provided that the facility:

(i) is a sustainable biomass facility;

(ii) has an average emission rate of not more than 0.075 pounds of nitrogen oxides per million British thermal units of heat input; and

(iii) has a capacity of less than 500 kilowatts;

(2) a passive or active solar water or space heating system; or

(3) a system that relies on energy derived directly from geothermal energy.

(b) A person is entitled to an exemption from taxation of the amount of the appraised value of a single-family residential property, a multifamily residential property consisting of not more than four dwelling units, or land appraised as provided by Subchapter C, Chapter 23, or by Subchapter D of that chapter, other than as timberland or wildlife management land, that the person owns that arises from the installation or construction on the property of a renewable energy device, structure, facility, or system if:

(1) the installation or construction of the device, structure, facility, or system began on or after October 1, 2007; and

(2) the energy generated by the device, structure, facility, or system is used in connection with the property.

(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, Tax Code, is amended by amending Subsection (c) and adding Subsection (n) to read as follows:

(c) An exemption provided by Section 11.13, 11.17, 11.18, 11.182, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(h), (j), or (j-1), 11.29, 11.30, [or] 11.31, or 11.34, 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, 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.

(n) Notwithstanding Subsection (c), if a person who receives an exemption provided by Section 11.34 modifies the renewable energy device, structure, facility, or system for which the exemption is allowed in a manner for which a building permit is required, the person must reapply for the exemption in the manner provided by this section in order to continue receiving the exemption. If the exemption is allowed, the exemption need not be claimed in subsequent years and, except as otherwise provided by this section, applies to the property until it changes ownership or the person's qualification for the exemption changes.

SECTION 3. As soon as practicable after the effective date of this Act, the comptroller, with the assistance of the State Energy Conservation Office, shall develop the guidelines required by Section 11.34, Tax Code, as added by this Act.

SECTION 4. This Act applies only to ad valorem taxes imposed for a tax year beginning on or after the effective date of this Act.

SECTION 5. This Act takes effect January 1, 2010, but only if the constitutional amendment to authorize the legislature to exempt from ad valorem taxation a renewable energy device, structure, facility, or system installed or constructed on residential property, land designated for agricultural use, or open-space land devoted to farm or ranch purposes for the generation of energy for use in connection with the property is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.