HB4057 - 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.

  89R9074 CJC-D     By: Troxclair H.B. No. 4057       A BILL TO BE ENTITLED   AN ACT   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.