Bill > HB3390

This bill introduces a new property tax exemption for certain electric generators installed on real property. Specifically, it defines an "electric generator" as a device that converts mechanical energy to electrical energy, powered by natural gas, liquefied petroleum gas, diesel fuel, biodiesel fuel, or hydrogen, fully enclosed in a sound-attenuating enclosure, and connected to a structure's main electrical panel. Property owners will be eligible for a tax exemption on the increased appraised value of their property resulting from the installation of such a generator primarily used for on-site energy production. The comptroller is tasked with developing guidelines to help local officials implement this exemption. The bill will only take effect on January 1, 2026, and is contingent upon voter approval of a related constitutional amendment that would authorize this specific property tax exemption. By adding this provision to the Texas Tax Code, the legislation aims to incentivize on-site energy generation by reducing the potential property tax burden associated with installing these generators.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3390