Texas HB4725 exempts sales and use taxes for distributed energy systems in the state.

HB4725, known as the Texas Distributed Energy Sales Tax Exemption Act, exempts sales and use taxes for the sale, lease, or installation of distributed energy systems. These systems generate electricity on-site using solar, wind, natural gas, hydrogen, methane, propane, battery storage, or liquid fuels. The exemption applies only to the portion of a transaction directly related to the purchase, lease, or installation of the system and excludes costs for construction, repairs, or maintenance. The comptroller must adopt rules to implement the exemption by June 1, 2025.

Texas HB4725 exempts sales and use taxes for distributed energy systems in the state.

HB4725, known as the Texas Distributed Energy Sales Tax Exemption Act, exempts sales and use taxes for the sale, lease, or installation of distributed energy systems. These systems generate electricity on-site using solar, wind, natural gas, hydrogen, methane, propane, battery storage, or liquid fuels. The exemption applies only to the portion of a transaction directly related to the purchase, lease, or installation of the system and excludes costs for construction, repairs, or maintenance. The comptroller must adopt rules to implement the exemption by June 1, 2025.