The bill, S.B. No. 419, amends Section 23.26(d) of the Texas Tax Code to establish new guidelines for determining the market value of solar energy property for ad valorem tax purposes. Specifically, it requires the chief appraiser to calculate the depreciated value of solar energy property using a useful life of not less than 35 years, replacing the previous limit that did not exceed 10 years. This change aims to provide a more accurate assessment of the value of solar energy assets, reflecting their longer lifespan and potential economic benefits.

The amended provisions will apply only to appraisals for tax years beginning on or after the effective date of the Act, which is set for January 1, 2026. This timeline allows for a transition period for the implementation of the new appraisal standards.

Statutes affected:
Introduced: Tax Code 23.26 (Tax Code 23)