Bill > SB419

This bill modifies how the market value of solar energy property is determined for tax assessment purposes in Texas. Specifically, the bill changes the useful life calculation used by chief appraisers when determining the property's value using the cost method of appraisal. Currently, the law allows for a useful life of up to 10 years, but this bill mandates a useful life of not less than 35 years. This change means that solar energy property will be assessed with a longer expected operational lifespan, which could potentially result in a different tax valuation. The new provisions will apply to solar energy property tax assessments for tax years beginning on or after January 1, 2026. The bill aims to provide a more accurate and potentially more favorable method of valuing solar energy installations for ad valorem (property) tax purposes, reflecting the typically longer operational life of solar energy systems.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB419