WeVote
Log In

Bill

Bill

HB 4057

Relating to the authority of a taxing unit to enter into an agreement to exempt from ad valorem taxation a portion of the value of property on which a renewable energy facility is located or is planned to be located.

89th Legislature (2025) Introduced by Ellen Troxclair

Bill authorizes Texas taxing units to negotiate property tax exemptions on renewable energy facilities to incentivize development, reducing local government revenues.

Referred to Ways & Means
#citygovernment--finance(i0062) #countygovernment--finance(i0097) #economic&industrialdevelopment--general(i0214) #energy--solar(i0316) #energy--wind(ia9ye) #renewableenergy(s0611) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793) #utilities--electric(i0831)
0
WeVote Research Nonpartisan
Bill Summary · HB 4057

Legislative bill overview

HB 4057 grants Texas taxing units (counties, cities, school districts) the authority to enter into agreements exempting portions of property value from ad valorem (property) taxes when renewable energy facilities are located or planned on that property. This would allow local governments to negotiate tax abatements as incentives for renewable energy development.

Why is this important

Property taxes are a major revenue source for schools, counties, and municipalities. Tax exemptions for renewable energy could accelerate clean energy deployment and attract investment, but would reduce local government revenues unless offset by increased economic activity or state funding. The bill essentially shifts discretion to local entities to decide whether tax incentives are worth the trade-off.

Potential points of contention

  • Revenue impact on schools: School districts depend heavily on property tax revenue; exempting renewable energy properties could reduce education funding unless the state compensates losses
  • Fairness and precedent: Creates preferential treatment for renewable energy over other industries or property owners, potentially inviting requests for similar exemptions
  • Scope ambiguity: "A portion of the value" is undefined—unclear what percentage exemptions local units could offer or whether there are guardrails against excessive abatement

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

Sign in to ask a question.