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SJR 73

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation the amount of the appraised value of real property that arises from the installation or construction on the property of a generator that is primarily for the production and distribution of energy for on-site use.

89th Legislature (2025) Introduced by Brandon Creighton

Texas proposes constitutional amendment allowing legislature to exempt on-site energy generator installations from property tax increases, potentially incentivizing renewable energy adoption while reducing local tax revenue.

Referred to Local Government
#energy--general(i0315) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793) #utilities--electric(i0831)
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Bill Summary · SJR 73

Legislative bill overview

SJR 73 proposes a constitutional amendment to Texas that would allow the state legislature to exempt property owners from ad valorem (property) taxes on the increased value their property gains from installing on-site energy generation equipment, such as solar panels or generators. This is a constitutional proposal that requires voter approval to take effect.

Why is this important

Property tax assessments typically increase when homeowners or businesses add valuable improvements like energy generators, which can significantly raise annual tax bills despite the owner's intent to reduce energy costs. This amendment would give the legislature authority to prevent that tax penalty, potentially making renewable energy and backup power systems more economically attractive to property owners.

Potential points of contention

  • Tax base erosion: Exempting property value improvements reduces local government tax revenue that funds schools, roads, and emergency services, potentially shifting costs to other taxpayers or services
  • Equity concerns: The exemption may primarily benefit wealthier property owners who can afford upfront installation costs, while not helping renters or those without resources for such upgrades
  • Scope ambiguity: The bill doesn't specify which types of generators qualify, how the value exemption is calculated, or whether there are size/capacity limits, leaving significant implementation details to future legislative action

Compiled from official sources — confirm details with the bill’s official record.

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