Key Takeaways:
- New Texas law extends incentives for renewable energy developers to 2029
- This new Texas law also increases transparency & requires public hearings
- Law seen as a factor to keep spurring renewable energy development in the state
Texas – indeed, everything is bigger. The State of Texas has signed into law an extension of a tax abatement program (known locally as Chapter 312) into the year 2029. This law will add transparency for local taxpayers and increase the incentives for renewable energy development in the Lone Star State, a state already seen as one of the friendliest for those looking to build out wind and solar farms.
Texas is a state without an income tax, so things such as property and sales tax are key drivers for state income. Unfortunately for developers, property taxes in this type of economic setting can kill a deal. The state’s Chapter 312 abatement program helps keep exorbitant taxes at bay, while requiring public hearings and transparent reporting so that citizens can visualize the greater good impact of things such as renewable project developments.
It should be noted that Chapter 312 has a sister program, called Chapter 313, which impacts school district property taxation in the state. Because of how Texas structures funding for education, school districts cannot engage in the same degree of abatements as a county, college or hospital district. Hence the two programs. Below, in a chart from Solar Industry Magazine, shows how one such project is positively impacted by these abatements so that the region could win the project.
Learn more on the details, the impacts, and how Texas leverages these types of tools to fuel renewable development by clicking the link in “What We’re Reading” below.
What We’re Reading: “New Texas Tax Law A Boon For Renewable Energy Development,” by Tony Trahan for Solar Industry Magazine.