Bill Caption

Relating to the eligibility of certain property for certain ad valorem tax incentives relating to wind-powered energy devices.

Fiscal Notes

To the extent that wind farm owners, subject to the bill's provisions, would no longer be eligible to receive a property tax abatement or limitation,related costs to the Foundation School Fund could be decreased through the operation of the school finance formulas. 

Bill Analysis

Under current law, wind-powered energy devices are granted tax exemptions and favorable appraisals as a source of renewable energy. HB 445 would would amend the Tax Code so that an owner or lessee of a parcel of real property, located wholly or partly in a reinvestment zone, may not receive an exemption from taxation of any portion of the value of the parcel of property if on or after September 1st, 2017 a wind-powered energy device is installed or constructed on the same parcel of property at a location within 30 miles of a military aviation facility. The owner would also not be able to receive a limitation on appraised value for the parcel of land, any buildings or improvements, or other personal property.

Vote Recommendation Notes

Tax incentives for wind energy distort energy markets and prop up an industry at taxpayer expense that could not otherwise stand on its own merit. To the extent that this bill constricts opportunities for wind-power related subsidies, this bill is a step in the right direction toward limiting government. For these reasons we support HB 445.

On a related note, we would support legislation to altogether do away with the underlying tax incentive program.