S.B. No. 1754 introduces amendments to the Local Government Code and the Tax Code in Texas, specifically addressing the taxation of renewable energy facilities. The bill prohibits municipalities, counties, and other taxing units from entering into agreements that would exempt a portion of the value of real property or tangible personal property associated with renewable energy facilities from ad valorem taxation. This prohibition applies to facilities that sell energy or ancillary services at wholesale for a power grid and includes definitions for various types of renewable energy facilities, such as solar and wind power generation facilities, as well as battery energy storage facilities.

The new legal language added to the Local Government Code and the Tax Code clarifies that these exemptions cannot be granted during the term of the agreement. The changes will only apply to agreements entered into on or after January 1, 2026, ensuring that any existing agreements prior to this date remain unaffected. Overall, the bill aims to maintain tax revenue from renewable energy facilities by preventing tax abatements that could reduce the taxable value of such properties.

Statutes affected:
Introduced: ()