Texas HB3586 prohibits taxing units from exempting solar power facilities with a capacity of 10 megawatts or more from ad valorem taxation.

Texas HB3586 amends the Tax Code to prohibit taxing units from entering into agreements to exempt from ad valorem taxation a portion of the value of property on which a solar power facility is located or is planned to be located. This prohibition applies specifically to solar power facilities with a generation or storage capacity of 10 megawatts or more. The change in law applies only to agreements entered into on or after the effective date of the Act, which is September 1, 2025.

Texas HB3586 prohibits taxing units from exempting solar power facilities with a capacity of 10 megawatts or more from ad valorem taxation.

Texas HB3586 amends the Tax Code to prohibit taxing units from entering into agreements to exempt from ad valorem taxation a portion of the value of property on which a solar power facility is located or is planned to be located. This prohibition applies specifically to solar power facilities with a generation or storage capacity of 10 megawatts or more. The change in law applies only to agreements entered into on or after the effective date of the Act, which is September 1, 2025.