Texas Gives Property Tax Exemptions on Properties with Renewable Energy Systems

Although Texas doesn’t give incentives or tax exemptions for purchasing renewable energy equipment, it offers tax exemptions and deductions for installing renewable energy systems.

Wind Turbine in a Poppy Field. See my galllery...

Wind Turbine in a Poppy Field from Crestock RF Stock Photos

Although Texas doesn’t give any incentives or tax exemptions on the purchase of renewable energy equipment, the state does offer various tax exemptions and deductions that can help individuals with their finances when they install a renewable energy system on their property.

According to the Texas property tax code, the amount of your solar or wind-powered energy installation is exempted from property tax. The tax payer will be taxed for the appraised value of the property minus the amount of the system.

Eligible renewable technologies include solar water heat, passive solar space heat, solar space heat, solar thermal process heat, solar thermal electric, solar photovoltaic, biomass, wind, storage technologies, anaerobic digestion, and solar pool heating.

A solar energy device is an apparatus that’s designed to convert radiant energy from the sun, including energy imparted to the plants through photosynthesis through the processes of anaerobic digestion, pyrolysis, gasification or fermentation. But it doesn’t include direct combustion into thermal, electrical or mechanical energy. It could also be a device that stores converted energy or distributes radiant solar energy.

A wind-powered energy device is an apparatus that’s designed to convert energy from the wind into mechanical, thermal or electrical energy. It can also be a device that stores or distributes converted energy.

For instance, if your property is appraised at $100,000 and you install a $20,000 renewable energy system that increased its property value, the exemption will apply to the added value. That means you’ll be taxed only on the property value before you added the renewable energy installation.

People who are interested in claiming this property tax exemption must submit an exemption application form for solar or wind energy devices, which can be downloaded at this link: Form 50-123.

For more information about Texas’ Renewable Energy Systems Property Tax Exemption, you can contact:

Taxpayer Assistance – Renewable Energy Property Tax Exemption
Comptroller of Public Accounts
Tax Policy Division – Property Tax
Post Office Box 13528, Capitol Station
Austin , TX 78711-3528
Phone: (800) 531-5441 Ext.5-9806
Phone 2: (512) 305-9806
E-Mail: tax.help@cpa.state.tx.us
Web Site: http://www.window.state.tx.us/

Disclaimer: This article does not constitute a source of official legal or financial advice. While we attempt to represent all data as accurately as possible, we advise you to refer to official government websites for the most accurate and up-to-date information.

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3 Responses to “Texas Gives Property Tax Exemptions on Properties with Renewable Energy Systems”

  1. Richard@Debt problems
    March 29, 2010 at 5:19 am #

    Hey if Texas are getting behind it that has got to be good news even they are coming around to the idea of being more green. Great info and I think this is a great political move.

  2. Property Sales
    December 16, 2010 at 7:54 am #

    I’d heard of this in another state, I’m glad more are showing green-initiative, especially Texas!

  3. Renate Janssen
    October 1, 2012 at 1:00 pm #

    solar power has the future. Just orderd some new panels

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