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HB 33

Relating to the provision by a political subdivision of credits against impact fees to builders and developers for certain water conservation and reuse projects.

89th Legislature, 1st Called Session (2025) Introduced by Cecil Bell

Texas bill allows cities/counties to reduce impact fees for developers implementing water conservation and reuse projects, incentivizing sustainable building practices.

Filed
#citygovernment--general(i0060) #countygovernment--general(i0096) #fees&othernontaxrevenue--local(i0361) #politicalsubdivisions(i0588) #water--conservation(i097l)
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WeVote Research Nonpartisan
Bill Summary · HB 33

Legislative bill overview

HB 33 would authorize Texas political subdivisions (cities, counties, water districts) to offer tax credits or fee reductions to builders and developers who implement water conservation and reuse projects. The bill creates a mechanism for local governments to incentivize private development that includes features like rainwater harvesting, greywater systems, or other water-saving infrastructure by reducing the impact fees developers normally pay.

Why is this important

Water scarcity is a critical issue in Texas, particularly in rapidly growing regions. By reducing financial barriers for developers to incorporate water conservation measures, the bill could accelerate adoption of these technologies in new construction. However, the effectiveness depends entirely on whether local governments choose to offer such credits and how aggressively they do so.

Potential points of contention

  • Revenue impact: Reducing impact fees decreases funding for municipal water infrastructure; unclear how this revenue loss would be offset
  • Inequitable benefit distribution: Credits primarily benefit large developers with capital for upfront conservation investments, potentially disadvantaging smaller builders
  • Undefined standards: The bill lacks specificity about what projects qualify, how much credit is appropriate, or how local governments establish guidelines, creating potential for inconsistent implementation

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

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