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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 real property that arises from the |
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installation or construction on the property of a generator that is |
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primarily for the production and distribution of energy for on-site |
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use. |
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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 11.38 to read as follows: |
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Sec. 11.38. ELECTRIC GENERATORS. (a) In this section, |
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"electric generator" means a device that converts mechanical energy |
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to electrical energy and is: |
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(1) powered by natural gas, liquefied petroleum gas, |
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diesel fuel, biodiesel fuel, or hydrogen; |
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(2) fully enclosed in an integral |
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manufacturer-supplied sound attenuating enclosure; and |
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(3) connected to the main electrical panel of a |
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structure by a manual or automatic transfer switch. |
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(b) A person is entitled to an exemption from taxation of |
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the amount of appraised value of real property owned by the person |
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that arises from the installation or construction on the property |
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of an electric generator that is primarily for production and |
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distribution of energy for on-site use. |
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(c) The comptroller shall develop guidelines to assist |
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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, 11.29, 11.30, 11.31, 11.315, 11.35, [or] |
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11.36, or 11.38 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), 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. Section 11.38, Tax Code, as added by this Act, |
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applies only to an ad valorem tax year that begins on or after the |
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effective date of this Act. |
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SECTION 4. It is the intent of the 89th Legislature, Regular |
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Session, 2025, that the amendments made by this Act be harmonized |
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with another Act of the 89th Legislature, Regular Session, 2025, |
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relating to nonsubstantive additions to and corrections in enacted |
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codes. |
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SECTION 5. 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, authorizing the legislature to exempt from |
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ad valorem taxation the amount of the appraised value of real |
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property that arises from the installation or construction on the |
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property of a generator that is primarily for the production and |
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distribution of energy for on-site use is approved by the voters. |
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If that amendment is not approved by the voters, this Act has no |
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effect. |