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HJR 157

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 Brooks Landgraf

Texas proposes constitutional amendment exempting property tax increases from on-site energy generation equipment to incentivize residential and commercial renewable energy adoption.

Referred to Ways & Means
#energy--general(i0315) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793) #utilities--electric(i0831)
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Bill Summary · HJR 157

Legislative bill overview

HJR 157 proposes a constitutional amendment allowing Texas to exempt from property tax increases the added value created when property owners install on-site energy generation systems (like solar panels or generators). This would require voter approval and would apply only to the increased property value attributable to the energy generation equipment itself, not the underlying property value.

Why is this important

Property tax assessments typically increase when home or business improvements are made, which can discourage renewable energy adoption by raising owners' tax bills. This amendment would remove that financial penalty, potentially accelerating on-site renewable energy installations and reducing barriers for property owners considering energy independence investments.

Potential points of contention

  • Lost tax revenue: Municipalities and school districts depend on property tax revenue; widespread exemptions could reduce funding for local services unless offset elsewhere
  • Valuation complexity: Determining what portion of property value increase is attributable solely to energy equipment (versus general property improvements) may create disputes and administrative burden
  • Equity concerns: The exemption primarily benefits property owners wealthy enough to install expensive energy systems, potentially creating a tax benefit skewed toward higher-income households
  • Scope ambiguity: The language "primarily for on-site use" leaves room for interpretation about what qualifies and whether hybrid systems or grid-connected systems are included

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

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