HB 3586

AN ACT relating to the authority of a taxing unit to enter into an

House Bill McLaughlin
Filed

Filed

Bill introduced by legislator

Committee

Hearing

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Calendar

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Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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What This Bill Does

Prohibits taxing units from offering tax abatements for solar power facilities with a generation or storage capacity of 10 megawatts or more. The legislation effectively prevents local governments from providing property tax exemptions or reductions for large solar energy projects. This means solar power facilities meeting the specified capacity threshold will be required to pay full property taxes, potentially impacting the economic feasibility of future solar energy developments in Texas.

Subject Areas

Bill Text

relating to the authority of a taxing unit to enter into an
agreement under the Property Redevelopment and Tax Abatement Act to
exempt from ad valorem taxation a portion of the value of property
on which a solar power facility is located or is planned to be
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  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
SOLAR POWER FACILITY PROPERTY.  (a)  In this section, "solar power
facility" means a facility designed and used primarily for the
purpose of collecting, generating, or storing solar energy.
(b)  This section applies only to a solar power facility that
has or will have a generation or storage capacity of 10 megawatts or
(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 solar power 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.  The change in law made by this Act applies only
to an agreement entered into under Chapter 312, Tax Code, on or
after the effective date of this Act.
SECTION 3.  This Act takes effect September 1, 2025.

Bill History

filed

Bill filed: AN ACT relating to the authority of a taxing unit to enter into an