Bill > SB1754

This bill prohibits local government entities (municipalities, counties, county industrial commissions, and development boards) from offering property tax exemptions or abatements for renewable energy facilities that sell energy at wholesale to a power grid. The bill defines "renewable energy facility" to include battery energy storage facilities, solar power generation facilities, and wind power generation facilities, specifically excluding battery storage facilities using natural gas. The legislation applies only to facilities selling energy wholesale and effectively prevents local governments from entering into agreements that would reduce property taxes for such renewable energy infrastructure. By amending sections of the Local Government Code and Tax Code, the bill aims to standardize the tax treatment of these facilities, ensuring they are fully taxed at their full property value. The changes will take effect on January 1, 2026, and will apply to any agreements entered into on or after that date, meaning existing agreements will not be immediately impacted. This approach appears to close potential tax incentive loopholes for wholesale renewable energy projects while maintaining a clear, uniform approach to their taxation.