Bill > HB4057

This bill prohibits local governments (municipalities, counties, county industrial commissions, and development boards) from providing property tax abatements (temporary tax exemptions) for certain renewable energy facilities that sell energy or ancillary services at wholesale to a power grid. Specifically, the bill defines renewable energy facilities as solar power generation facilities, wind power generation facilities, and qualifying battery energy storage facilities (excluding those using natural gas). The legislation defines these facilities in technical detail, such as describing solar facilities as those designed to convert solar radiant energy into thermal, mechanical, or electrical energy for distribution or sale. The bill amends sections of the Local Government Code and Tax Code to explicitly prevent taxing units from entering into agreements that would exempt from taxation the real property or tangible personal property associated with these renewable energy facilities. These restrictions will apply to any agreements entered into on or after January 1, 2026, effectively preventing local governments from offering tax incentives to utility-scale renewable energy projects that sell power wholesale.