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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, 2027. |
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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. If the constitutional amendment proposed by |
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H.J.R. 34, 89th Legislature, Regular Session, 2025, is approved by |
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the voters and the constitutional amendment proposed by H.J.R. 133, |
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89th Legislature, Regular Session, 2025, is not approved by the |
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voters, Section 11.43(c), Tax Code, as amended by H.B. 2730, Acts of |
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the 89th Legislature, Regular Session, 2025, H.B. 1620, Acts of the |
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89th Legislature, Regular Session, 2025, and effective September 1, |
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2025, and H.B. 247, Acts of the 89th Legislature, Regular Session, |
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2025, and effective January 1, 2026, is reenacted and amended to |
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read as 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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11.36, 11.37, or 11.38, once allowed, need not be claimed in |
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subsequent years, and except as otherwise provided by Subsection |
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(e), the exemption applies to the property until it changes |
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ownership or the person's qualification for the exemption changes. |
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However, except as provided by Subsection (r), and subject to |
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Subsection (c-1), the chief appraiser may require a person allowed |
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one of the exemptions in a prior year to file a new application to |
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confirm the person's current qualification for the exemption by |
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delivering a written notice that a new application is required, |
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accompanied by an appropriate application form, to the person |
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previously allowed the exemption. If the person previously allowed |
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the exemption is 65 years of age or older, the chief appraiser may |
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not cancel the exemption due to the person's failure to file the new |
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application unless the chief appraiser complies with the |
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requirements of Subsection (q), if applicable. |
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SECTION 3. If the constitutional amendment proposed by |
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H.J.R. 133, 89th Legislature, Regular Session, 2025, is approved by |
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the voters and the constitutional amendment proposed by H.J.R. 34, |
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89th Legislature, Regular Session, 2025, is not approved by the |
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voters, Section 11.43(c), Tax Code, as amended by H.B. 2730, Acts of |
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the 89th Legislature, Regular Session, 2025, H.B. 1620, Acts of the |
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89th Legislature, Regular Session, 2025, and effective September 1, |
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2025, and H.B. 2508, Acts of the 89th Legislature, Regular Session, |
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2025, and effective January 1, 2026, is reenacted and amended to |
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read as 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, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183, |
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11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), |
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11.231, 11.254, 11.27, 11.271, 11.272, 11.29, 11.30, 11.31, 11.315, |
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11.35, 11.36, or 11.37, once allowed, need not be claimed in |
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subsequent years, and except as otherwise provided by Subsection |
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(e), the exemption applies to the property until it changes |
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ownership or the person's qualification for the exemption changes. |
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However, except as provided by Subsection (r), and subject to |
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Subsection (c-1), the chief appraiser may require a person allowed |
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one of the exemptions in a prior year to file a new application to |
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confirm the person's current qualification for the exemption by |
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delivering a written notice that a new application is required, |
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accompanied by an appropriate application form, to the person |
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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 4. If both the constitutional amendment proposed by |
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H.J.R. 34, 89th Legislature, Regular Session, 2025, and the |
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constitutional amendment proposed by H.J.R. 133, 89th Legislature, |
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Regular Session, 2025, are approved by the voters, Section |
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11.43(c), Tax Code, as amended by H.B. 2730, Acts of the 89th |
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Legislature, Regular Session, 2025, H.B. 1620, Acts of the 89th |
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Legislature, Regular Session, 2025, and effective September 1, |
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2025, and H.B. 247 and H.B. 2508, Acts of the 89th Legislature, |
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Regular Session, 2025, and effective January 1, 2026, is reenacted |
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and amended to read as 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, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183, |
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11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), |
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11.231, 11.254, 11.27, 11.271, 11.272, 11.29, 11.30, 11.31, 11.315, |
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11.35, 11.36, 11.37, or 11.38, once allowed, need not be claimed in |
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subsequent years, and except as otherwise provided by Subsection |
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(e), the exemption applies to the property until it changes |
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ownership or the person's qualification for the exemption changes. |
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However, except as provided by Subsection (r), and subject to |
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Subsection (c-1), the chief appraiser may require a person allowed |
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one of the exemptions in a prior year to file a new application to |
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confirm the person's current qualification for the exemption by |
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delivering a written notice that a new application is required, |
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|
accompanied by an appropriate application form, to the person |
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|
previously allowed the exemption. If the person previously allowed |
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the exemption is 65 years of age or older, the chief appraiser may |
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not cancel the exemption due to the person's failure to file the new |
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application unless the chief appraiser complies with the |
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requirements of Subsection (q), if applicable. |
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SECTION 5. If neither the constitutional amendment proposed |
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by H.J.R. 34, 89th Legislature, Regular Session, 2025, nor the |
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constitutional amendment proposed by H.J.R. 133, 89th Legislature, |
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Regular Session, 2025, is approved by the voters, Section 11.43(c), |
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Tax Code, as amended by H.B. 2730, Acts of the 89th Legislature, |
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|
Regular Session, 2025, and H.B. 1620, Acts of the 89th Legislature, |
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|
Regular Session, 2025, and effective September 1, 2025, is |
|
|
reenacted and amended to read as 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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11.36, or 11.37, once allowed, need not be claimed in subsequent |
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years, and except as otherwise provided by Subsection (e), the |
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exemption applies to the property until it changes ownership or the |
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person's qualification for the exemption changes. However, except |
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as provided by Subsection (r), and subject to Subsection (c-1), the |
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chief appraiser may require a person allowed one of the exemptions |
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in a prior year to file a new application to confirm the person's |
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current qualification for the exemption by delivering a written |
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notice that a new application is required, accompanied by an |
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|
appropriate application form, to the person previously allowed the |
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exemption. If the person previously allowed the exemption is 65 |
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years of age or older, the chief appraiser may not cancel the |
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exemption due to the person's failure to file the new application |
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unless the chief appraiser complies with the requirements of |
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Subsection (q), if applicable. |
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SECTION 6. This Act applies only to a tax year that begins |
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on or after the effective date of this Act. |
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SECTION 7. This Act takes effect January 1, 2027, but only |
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if the constitutional amendment proposed by the 89th Legislature, |
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2nd Called Session, 2025, to authorize the legislature to provide |
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for an exemption from ad valorem taxation of the amount of the |
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market 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. |