HB 3390

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
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.38 to read as follows:
Sec. 11.38.  ELECTRIC GENERATORS.  (a)  In this section,
"electric generator" means a device that converts mechanical energy
(1)  powered by natural gas, liquefied petroleum gas,
diesel fuel, biodiesel fuel, or hydrogen;
(2)  fully enclosed in an integral
manufacturer-supplied sound attenuating enclosure; and
(3)  connected to the main electrical panel of a
structure by a manual or automatic transfer switch.
(b)  A person is entitled to an exemption from taxation of
the amount of appraised value of real property owned by the person
that arises from the installation or construction on the property
of an electric generator that is primarily for production and
distribution of energy for on-site use.
(c)  The comptroller 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
(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, 11.29, 11.30, 11.31, 11.315, 11.35, [or]
11.36, or 11.38 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.  Section 11.38, Tax Code, as added by this Act,
applies only to an ad valorem tax year that begins on or after the
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
SECTION 5.  This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, 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 is approved by the voters.
If that amendment is not approved by the voters, this Act has no