Bill > HB2039

This bill creates a new property tax exemption for homeowners who install energy efficiency-related improvements to their residential property. The bill defines "energy efficiency-related improvements" as technologies that reduce energy consumption, including high-efficiency heating and cooling systems, attic insulation, radiant barriers, smart thermostats, high-efficiency water heaters, electric vehicle charging technologies, high-efficiency windows, and sealing of doors and windows. Under this legislation, homeowners would be entitled to an exemption from property taxation for the increased appraised value resulting from these improvements. The comptroller, working with the State Energy Conservation Office, will develop guidelines to help local officials implement this exemption. The bill is set to take effect on January 1, 2026, but only if a corresponding constitutional amendment is approved by voters, which would authorize the legislature to create this specific type of property tax exemption. This legislation aims to incentivize homeowners to make energy-efficient upgrades by reducing the potential property tax impact of such improvements.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2039