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.

  89R6372 MLH-F     By: Gervin-Hawkins H.B. No. 2039       A BILL TO BE ENTITLED   AN ACT   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.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by   adding Section 11.272 to read as follows:           Sec.   11.272.     ENERGY EFFICIENCY-RELATED IMPROVEMENTS TO   RESIDENTIAL REAL PROPERTY.   (a)   In this section, "energy   efficiency-related improvement" means an improvement or technology   that reduces the amount of energy needed to perform the basic   functions of a property, including:                 (1)     a high-efficiency heating, ventilation, and air   conditioning system;                 (2)     a central air conditioning demand response   technology;                 (3)  a high-efficiency heat pump;                 (4)  attic insulation;                 (5)  a radiant barrier;                 (6)  a smart thermostat;                 (7)  a high-efficiency water heater;                 (8)     an electric vehicle charging demand response   technology;                 (9)  high-efficiency windows; and                 (10)     the sealing or resealing of doors, windows, or   other openings.           (b)     A person is entitled to an exemption from taxation of   the amount of the appraised value of residential real property   owned by the person that arises from the installation in the   property of an energy efficiency-related improvement.           (c)     The comptroller, with the assistance of the State Energy   Conservation Office or its successor, shall develop guidelines to   assist local officials in the administration of this section.          SECTION 2.  Section 11.43(c), Tax Code, is amended to read as   follows:          (c)  An exemption provided by Section 11.13, 11.131, 11.132,   11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,   11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,   11.254, 11.27, 11.271, 11.272, 11.29, 11.30, 11.31, 11.315, 11.35,   or 11.36, once allowed, need not be claimed in subsequent years, and   except as otherwise provided by Subsection (e), the exemption   applies to the property until it changes ownership or the person's   qualification for the exemption changes. However, except as   provided by Subsection (r), the chief appraiser may require a   person allowed one of the exemptions in a prior year to file a new   application to confirm the person's current qualification for the   exemption by delivering a written notice that a new application is   required, accompanied by an appropriate application form, to the   person previously allowed the exemption. If the person previously   allowed the exemption is 65 years of age or older, the chief   appraiser may not cancel the exemption due to the person's failure   to file the new application unless the chief appraiser complies   with the requirements of Subsection (q), if applicable.          SECTION 3.  This Act applies beginning with the 2026 tax   year.          SECTION 4.  It is the intent of the 89th Legislature, Regular   Session, 2025, that the amendments made by this Act be harmonized   with another Act of the 89th Legislature, Regular Session, 2025,   relating to nonsubstantive additions to and corrections in enacted   codes.          SECTION 5.  This Act takes effect January 1, 2026, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, to authorize the legislature to provide for   an exemption from ad valorem taxation of the amount of the market   value of residential real property that arises from the   installation in the property of certain energy efficiency-related   improvements is approved by the voters.  If that amendment is not   approved by the voters, this Act has no effect.