Texas House Bill HB3390

Texas 2025 - 89th Regular

• Filed: 2/26/25

Caption

Relating to an exemption from ad valorem taxation of the amount of the appraised value of real property that arises from the installation or construction on the property of a generator that is primarily for the production and distribution of energy for on-site use.

Impact

If enacted, HB3390 would directly amend the Texas Tax Code, adding a new section that allows property owners who install qualifying electric generators to receive a tax exemption on the increased appraised value of their real estate. This legislative change is aimed at promoting the use of alternative energy sources and encouraging property owners to invest in on-site energy solutions, potentially reducing energy costs and reliance on the grid.

Summary

House Bill 3390 proposes an exemption from ad valorem taxation for the appraised value of real property that results from the installation or construction of electric generators. These generators are defined in the bill as devices converting mechanical energy into electrical energy, primarily intended for on-site energy production and distribution. It outlines specific criteria for qualifying generators, including being powered by various fuels like natural gas or biodiesel and enclosed within a sound attenuating structure.

Contention

A notable point of contention regarding HB3390 may stem from its potential effects on local government revenue through property taxes. While proponents argue that the tax incentive could spur economic development and promote cleaner energy practices, opponents may raise concerns regarding the long-term implications on public funding and the sustainability of such tax exemptions. Additionally, the necessity for voter approval of a constitutional amendment to authorize this exemption could affect its passage and subsequent implementation.