Bill > HB4725

This bill introduces a sales tax exemption for distributed energy systems (DES), which are devices that generate electricity on-site using various energy sources like solar, wind, natural gas, hydrogen, methane, propane, battery storage, or liquid fuels. The bill aims to support energy self-sufficiency and economic growth by removing financial barriers to adopting these systems. The exemption covers the sale, lease, or installation of DES equipment, including photovoltaic panels, inverters, battery storage systems, and related mounting hardware, but excludes costs for general construction, repairs, or maintenance not directly related to the system. To qualify, the system must be primarily designed to supply electricity to a structure in Texas. The Texas Comptroller will be responsible for establishing eligibility criteria, reporting requirements, and enforcement measures, with rules to be adopted by June 1, 2025. The tax exemption will take effect on July 1, 2025, and apply to DES sales, leases, or installations occurring on or after that date. Businesses and homeowners claiming the exemption must be prepared to provide documentation verifying their system meets the specified requirements upon request.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4725