The bill amends the Texas Tax Code to recognize hydroponic farming for ad valorem tax purposes. Specifically, it adds a new subsection to Section 11.161, stating that farm or ranch products may be produced through hydroponic farming. Additionally, it modifies the definition of "Agriculture" in Section 23.42(d)(1) to explicitly include hydroponic farming as a method of producing plant products. Furthermore, Section 23.51(2) is amended to include hydroponic farming as an accepted agricultural use of land.

This legislation aims to ensure that land and equipment used for hydroponic farming are treated similarly to traditional agricultural practices for tax purposes. The changes will take effect on January 1, 2026, and will apply to ad valorem taxes imposed for tax years beginning on or after that date.

Statutes affected:
Introduced: Tax Code 11.161, Tax Code 23.42, Tax Code 23.51 (Tax Code 23, Tax Code 11)