Texas 2025 - 89th Regular

Texas House Bill HB4004

Filed

3/6/25

Out of House Committee

Voted on by House

Out of Senate Committee

Voted on by Senate

Governor Action

Bill Becomes Law

Caption

Relating to the eligibility of property for certain ad valorem tax incentives if a wind-powered energy device or a solar energy device has been installed or constructed on the property.

Impact

The amendments outlined in HB4004 would affect local tax codes significantly, making it more challenging for properties with wind energy devices to qualify for agricultural tax exemptions. This could lead to increased taxation for landowners who have installed renewable energy systems, potentially discouraging the adoption of green technologies in agricultural areas. Conversely, the bill aims to support the growth of renewable energy sectors by clarifying tax obligations associated with such installations, indicating a legislative push towards bolstering renewable energy initiatives in Texas.

Summary

House Bill 4004 proposes changes to the Texas Tax Code concerning property eligibility for certain ad valorem tax incentives when a wind-powered or solar energy device is present. The bill effectively modifies existing regulations that govern the assessment of property for tax purposes, particularly focusing on properties with renewable energy installations. One of the primary amendments stipulates that land designated for agricultural use cannot simultaneously be classified as such if a wind-powered energy device is installed, suggesting a shift towards favoring renewable energy developments over traditional agricultural classifications.

Contention

Notably, the bill may face opposition from agricultural stakeholders who perceive it as a threat to their financial stability through increased property taxes. Critics argue that the requirement to forfeit agricultural status could disincentivize farmers from embracing renewable energy technologies. Furthermore, the bill contains provisions that prevent the abatement of taxes on properties with wind devices, potentially raising concerns about the economic feasibility of integrating such technologies. The balance between advancing renewable energy and preserving agricultural economic viability will likely be a subject of contention as discussions surrounding HB4004 progress.

Companion Bills

No companion bills found.

Previously Filed As

TX HB3390

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.

TX SB2393

TX HB2039

Relating to an exemption from ad valorem taxation of the amount of the appraised value of residential real property that arises from the installation in the property of certain energy efficiency-related improvements.

TX HB1483

Relating to an exemption from ad valorem taxation of the amount of the appraised value of certain residential real property that arises from the installation in the property of certain energy efficiency-related improvements.

TX SB419

Relating to the determination of the market value of solar energy property for ad valorem tax purposes.

TX HB247

Relating to an exemption from ad valorem taxation of the amount of the appraised value of real property located in certain counties that arises from the installation or construction on the property of border security infrastructure and related improvements and to the consideration of the price paid by certain governmental entities for a parcel of or easement in real property purchased for the purpose of installing or constructing such infrastructure when appraising other real property.

TX HB389

Property; prohibit homeowners' associations from preventing property owners from installing solar energy devices; provisions

TX HJR157

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation 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.