House Bill No. 4057 aims to prohibit the exemption from ad valorem taxation for certain renewable energy facilities. The bill introduces new sections to the Local Government Code and the Tax Code, specifically Sections 380.005, 381.006, and 312.0022. These sections define "renewable energy facility" and clarify that the prohibition applies to facilities that sell energy or ancillary services at wholesale for a power grid. The governing bodies of municipalities, counties, and development boards are restricted from entering into agreements that would exempt a portion of the value of real property or tangible personal property associated with these renewable energy facilities from taxation during the term of the agreement.

The bill specifies that the definition of a renewable energy facility includes qualifying battery energy storage facilities, solar power generation facilities, and wind power generation facilities. It establishes that these changes will only apply to agreements entered into on or after January 1, 2026. This legislation reflects a shift in policy regarding the taxation of renewable energy facilities, aiming to ensure that such properties contribute to local tax revenues.

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