House Bill No. 4057 aims to prohibit certain taxing units in Texas from entering into agreements that would exempt renewable energy facilities from ad valorem taxation. 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 related entities cannot 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, a new section, 312.0022, is added to define "renewable energy facility" and related terms, including "qualifying battery energy storage facility," "solar power generation facility," and "wind power generation facility."

The provisions of this bill will only apply to agreements entered into after the effective date of January 1, 2026. This means that any existing agreements prior to this date will not be affected by the new prohibitions. The intent of the bill is to ensure that renewable energy facilities do not receive tax exemptions that could impact local tax revenues.

Statutes affected:
Introduced: ()