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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a taxing unit to enter into an |
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agreement to exempt from ad valorem taxation a portion of the value |
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of property on which a renewable energy facility is located or is |
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planned to be located. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 380, Local Government Code, is amended |
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by adding Section 380.005 to read as follows: |
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Sec. 380.005. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN |
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RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section, |
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"renewable energy facility" has the meaning assigned by Section |
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312.0022, Tax Code. |
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(b) This section applies only to a renewable energy facility |
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that sells energy or ancillary services at wholesale for a power |
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grid. |
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(c) The governing body of a municipality may not enter into |
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an agreement authorized by this chapter to exempt from ad valorem |
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taxation a portion of the value of real property on which a |
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renewable energy facility is located or is planned to be located |
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during the term of the agreement, or of tangible personal property |
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that is located or is planned to be located on the real property |
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during that term. |
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SECTION 2. Chapter 381, Local Government Code, is amended |
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by adding Section 381.006 to read as follows: |
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Sec. 381.006. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN |
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RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section, |
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"renewable energy facility" has the meaning assigned by Section |
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312.0022, Tax Code. |
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(b) This section applies only to a renewable energy facility |
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that sells energy or ancillary services at wholesale for a power |
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grid. |
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(c) A county, county industrial commission, or development |
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board may not enter into an agreement authorized by this chapter to |
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exempt from ad valorem taxation a portion of the value of real |
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property on which a renewable energy facility is located or is |
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planned to be located during the term of the agreement, or of |
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tangible personal property that is located or is planned to be |
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located on the real property during that term. |
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SECTION 3. Subchapter A, Chapter 312, Tax Code, is amended |
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by adding Section 312.0022 to read as follows: |
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Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN |
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RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section: |
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(1) "Qualifying battery energy storage facility" |
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means a facility at which is located an electrochemical device that |
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collects, stores, and discharges energy, other than a device that |
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collects, stores, and discharges energy generated from natural gas. |
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(2) "Renewable energy facility" means: |
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(A) a qualifying battery energy storage |
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facility; |
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(B) a solar power generation facility; or |
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(C) a wind power generation facility. |
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(3) "Solar power generation facility" means a facility |
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designed and used to convert the radiant energy from the sun into |
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thermal, mechanical, or electrical energy for distribution or sale. |
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(4) "Wind power generation facility" means a facility |
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designed and used to convert the energy available in the wind into |
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thermal, mechanical, or electrical energy for distribution or sale. |
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(b) This section applies only to a renewable energy facility |
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that sells energy or ancillary services at wholesale for a power |
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grid. |
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(c) The governing body of a taxing unit may not enter into an |
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agreement under this chapter to exempt from taxation a portion of |
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the value of real property on which a renewable energy facility is |
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located or is planned to be located during the term of the |
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agreement, or of tangible personal property that is located or is |
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planned to be located on the real property during that term. |
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SECTION 4. The changes in law made by this Act apply only to |
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an agreement entered into under Chapter 380 or 381, Local |
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Government Code, or Chapter 312, Tax Code, on or after the effective |
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date of this Act. |
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SECTION 5. This Act takes effect January 1, 2026. |