H.B. No. 4759 amends the Texas Tax Code to include provisions for the treatment of land and equipment used in 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 by 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 clarify that "Agricultural use" encompasses hydroponic farming, alongside other agricultural activities.

The bill stipulates that these changes will apply only to ad valorem taxes imposed for tax years beginning on or after January 1, 2026. This legislation aims to recognize and support the growing practice of hydroponic farming within the state's agricultural framework, ensuring that such operations are treated equitably under tax law.

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