Bill Text: TX SB1754 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the authority of a taxing unit to enter into an agreement to exempt from ad valorem taxation a portion of the value of property on which a renewable energy facility is located or is planned to be located.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-28 - Filed [SB1754 Detail]
Download: Texas-2025-SB1754-Introduced.html
| 89R9074 CJC-D | ||
| By: Birdwell | S.B. No. 1754 | |
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| relating to the authority of a taxing unit to enter into an | ||
| agreement to exempt from ad valorem taxation a portion of the value | ||
| of property on which a renewable energy facility is located or is | ||
| planned to be located. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 380, Local Government Code, is amended | ||
| by adding Section 380.005 to read as follows: | ||
| Sec. 380.005. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN | ||
| RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section, | ||
| "renewable energy facility" has the meaning assigned by Section | ||
| 312.0022, Tax Code. | ||
| (b) This section applies only to a renewable energy facility | ||
| that sells energy or ancillary services at wholesale for a power | ||
| grid. | ||
| (c) The governing body of a municipality may not enter into | ||
| an agreement authorized by this chapter to exempt from ad valorem | ||
| taxation a portion of the value of real property on which a | ||
| renewable energy facility is located or is planned to be located | ||
| during the term of the agreement, or of tangible personal property | ||
| that is located or is planned to be located on the real property | ||
| during that term. | ||
| SECTION 2. Chapter 381, Local Government Code, is amended | ||
| by adding Section 381.006 to read as follows: | ||
| Sec. 381.006. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN | ||
| RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section, | ||
| "renewable energy facility" has the meaning assigned by Section | ||
| 312.0022, Tax Code. | ||
| (b) This section applies only to a renewable energy facility | ||
| that sells energy or ancillary services at wholesale for a power | ||
| grid. | ||
| (c) A county, county industrial commission, or development | ||
| board may not enter into an agreement authorized by this chapter to | ||
| exempt from ad valorem taxation a portion of the value of real | ||
| property on which a renewable energy facility is located or is | ||
| planned to be located during the term of the agreement, or of | ||
| tangible personal property that is located or is planned to be | ||
| located on the real property during that term. | ||
| SECTION 3. Subchapter A, Chapter 312, Tax Code, is amended | ||
| by adding Section 312.0022 to read as follows: | ||
| Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN | ||
| RENEWABLE ENERGY FACILITY PROPERTY. (a) In this section: | ||
| (1) "Qualifying battery energy storage facility" | ||
| means a facility at which is located an electrochemical device that | ||
| collects, stores, and discharges energy, other than a device that | ||
| collects, stores, and discharges energy generated from natural gas. | ||
| (2) "Renewable energy facility" means: | ||
| (A) a qualifying battery energy storage | ||
| facility; | ||
| (B) a solar power generation facility; or | ||
| (C) a wind power generation facility. | ||
| (3) "Solar power generation facility" means a facility | ||
| designed and used to convert the radiant energy from the sun into | ||
| thermal, mechanical, or electrical energy for distribution or sale. | ||
| (4) "Wind power generation facility" means a facility | ||
| designed and used to convert the energy available in the wind into | ||
| thermal, mechanical, or electrical energy for distribution or sale. | ||
| (b) This section applies only to a renewable energy facility | ||
| that sells energy or ancillary services at wholesale for a power | ||
| grid. | ||
| (c) The governing body of a taxing unit may not enter into an | ||
| agreement under this chapter to exempt from taxation a portion of | ||
| the value of real property on which a renewable energy facility is | ||
| located or is planned to be located during the term of the | ||
| agreement, or of tangible personal property that is located or is | ||
| planned to be located on the real property during that term. | ||
| SECTION 4. The changes in law made by this Act apply only to | ||
| an agreement entered into under Chapter 380 or 381, Local | ||
| Government Code, or Chapter 312, Tax Code, on or after the effective | ||
| date of this Act. | ||
| SECTION 5. This Act takes effect January 1, 2026. | ||
