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Bill

HB 4004

Relating to the eligibility of property for certain ad valorem tax incentives if a wind-powered energy device or a solar energy device has been installed or constructed on the property.

89th Legislature (2025) Introduced by Brent Money

HB 4004 preserves ad valorem tax incentive eligibility for Texas properties that install wind or solar energy devices, reducing financial barriers to renewable energy adoption.

Referred to Ways & Means
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Bill Summary · HB 4004

Legislative bill overview

HB 4004 modifies Texas property tax law to allow properties with wind or solar energy devices to remain eligible for certain ad valorem (property value-based) tax incentives even after installing renewable energy equipment. Currently, adding these devices may disqualify properties from existing tax breaks. The bill would preserve tax incentive eligibility for property owners who adopt renewable energy.

Why is this important

Property tax incentives significantly affect the financial feasibility of renewable energy investments for homeowners and businesses. By protecting existing tax benefits when renewable equipment is added, the bill could reduce a financial barrier to solar and wind adoption in Texas. This directly impacts the cost-benefit calculation for residential and commercial renewable energy projects.

Potential points of contention

  • Tax base erosion concerns: Opponents may argue that preserving multiple tax incentives simultaneously reduces municipal and school district tax revenue needed for public services
  • Definition ambiguity: The bill's scope depends on which "certain ad valorem tax incentives" qualify—agricultural exemptions, homestead exemptions, or business property exemptions could be affected differently
  • Economic fairness questions: Some may contend that stacking tax benefits gives renewable energy adopters unfair advantages over non-adopting property owners paying full tax rates

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

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