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Bill

HB 13

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, 2nd Called Session (2025) Introduced by Cecil Bell and 1 co-sponsor

Texas bill authorizes municipalities to grant impact fee credits to developers installing water conservation projects, incentivizing sustainable building practices.

Referred to Intergovernmental Affairs
#citygovernment--general(i0060) #countygovernment--general(i0096) #fees&othernontaxrevenue--local(i0361) #politicalsubdivisions(i0588) #water--conservation(i097l)
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Bill Summary · HB 13

Legislative bill overview

HB 13 allows 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. This creates a financial incentive mechanism for developers to voluntarily adopt water-saving infrastructure beyond minimum code requirements.

Why is this important

Water scarcity is an ongoing challenge across Texas, particularly in growing urban areas. By reducing financial barriers for developers to install conservation systems, the bill could accelerate adoption of technologies like rainwater harvesting, greywater systems, and drought-resistant landscaping at the construction phase—when implementation is most cost-effective. This addresses water supply pressures while potentially reducing future municipal water infrastructure costs.

Potential points of contention

  • Revenue impact on local governments: Impact fees fund infrastructure; reducing them may strain municipal budgets or shift costs to other taxpayers unless offset by state funding or alternative revenue sources.
  • Incentive equity concerns: Credits may primarily benefit large, profitable developers while smaller builders or lower-income housing projects face comparatively higher net costs, potentially affecting housing affordability.
  • Implementation inconsistency: Without statewide standards, different jurisdictions could offer vastly different incentive levels, creating unpredictable development patterns and potential disputes over which projects qualify.

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

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