Texas SB1754 prohibits taxing units from exempting renewable energy facilities from ad valorem taxation.

Texas SB1754 amends the Local Government Code and 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 renewable energy facility is located or planned. This applies to qualifying battery energy storage facilities, solar power generation facilities, and wind power generation facilities that sell energy or ancillary services at wholesale for a power grid. The changes apply to agreements entered into after the effective date of January 1, 2026.

Texas SB1754 prohibits taxing units from exempting renewable energy facilities from ad valorem taxation.

Texas SB1754 amends the Local Government Code and 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 renewable energy facility is located or planned. This applies to qualifying battery energy storage facilities, solar power generation facilities, and wind power generation facilities that sell energy or ancillary services at wholesale for a power grid. The changes apply to agreements entered into after the effective date of January 1, 2026.