Senate Bill No. 1754 aims to prohibit the exemption of ad valorem taxation for certain renewable energy facilities in Texas. The bill introduces new sections to the Local Government Code and the Tax Code, specifically Sections 380.005 and 381.006, which state that municipalities, counties, and development boards cannot enter into agreements to exempt a portion of the value of real property or tangible personal property associated with renewable energy facilities that sell energy or ancillary services at wholesale for a power grid. Additionally, Section 312.0022 of the Tax Code defines "renewable energy facility" to include qualifying battery energy storage facilities, solar power generation facilities, and wind power generation facilities.

The provisions of this bill will only apply to agreements entered into on or after its effective date of January 1, 2026. This legislative change reflects a shift in policy regarding the taxation of renewable energy facilities, aiming to ensure that these properties contribute to local tax revenues during the term of any agreements made.

Statutes affected:
Introduced: ()
Senate Committee Report: ()