Renewable Energy Systems Property Tax Exemption

The Texas property tax code allows an exemption of the amount of 100% of the appraised property value increase arising from the installation or construction of a solar or wind-powered energy device that is primarily for the production and distribution of thermal, mechanical, or electrical energy for on-site use and devices used to store that energy.

Solar energy devices installed or constructed on or after January 1, 2014, used for a commercial purpose are subject to the cost method of appraisal, and the depreciated value must be calculated using a useful life of 10 years or less (H.B. 2500).

Eligible Technologies

"Solar" is broadly defined and includes a range of biomass technologies. "Solar energy device" means an apparatus designed or adapted to convert the radiant energy from the sun, including energy imparted to plants through photosynthesis employing the bio-conversion processes of anaerobic digestion, gasification, pyrolysis, or fermentation, but not including direct combustion, into thermal, mechanical, or electrical energy; to store the converted energy, either in the form to which originally converted or another form; or to distribute radiant solar energy or the energy to which the radiant solar energy is converted.

"Wind-powered energy device" means an apparatus designed or adapted to convert the energy available in the wind into thermal, mechanical, or electrical energy; to store the converted energy, either in the form to which originally converted or another form; or to distribute the converted energy.

Process

Those wishing to claim this exemption must fill out Form 50-123, “Exemption Application for Solar or Wind-Powered Energy Devices.”

More information can be found in the Solar and Wind-Powered Energy Device Exemption and Appraisal Guidelines.