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HJR 102

Proposing a constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation of the amount of the market value of residential real property that arises from the installation in the property of certain energy efficiency-related improvements.

89th Legislature (2025) Introduced by Barbara Gervin-Hawkins

Texas constitutional amendment allowing legislature to exempt property tax increases from energy efficiency home improvements, reducing revenue but incentivizing green upgrades.

Left pending in committee
#energy--conservation(i0317) #energy--general(i0315) #propertyinterests--realproperty(i0595) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HJR 102

Legislative bill overview

HJR 102 proposes a constitutional amendment that would allow the Texas legislature to exempt homeowners from property tax increases caused by energy efficiency improvements (such as solar panels, insulation, or HVAC upgrades). Currently, adding these improvements increases a home's assessed value, which raises property taxes. This amendment would authorize—but not require—the legislature to prevent that tax increase.

Why is this important

Energy efficiency upgrades require significant upfront investment. Avoiding subsequent property tax increases could make these improvements more financially attractive to homeowners and encourage adoption of green technologies. However, this also reduces property tax revenue unless offset elsewhere, affecting school funding and local services that depend on property tax bases.

Potential points of contention

  • Revenue impact: Exempting improvements from taxation reduces assessed property values, potentially lowering tax revenue for schools and local governments unless they raise rates or cut services
  • Equity concerns: Benefits primarily homeowners who can afford expensive upgrades; renters and lower-income homeowners unable to make such improvements receive no benefit
  • Scope ambiguity: The bill doesn't specify which improvements qualify, leaving implementation details to future legislation and potentially creating disputes over what counts as "energy efficiency-related"
  • Implementation complexity: Requires tracking improvements over time and assessing their individual contributions to market value, adding administrative burden to assessor offices

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

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