SB 277

85(R) - 2017
Senate Veteran Affairs & Border Security
House Ways & Means
Senate Veteran Affairs & Border Security
House Ways & Means

Companion Bill

HB 445

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral


Donna Campbell


James Frank

Bill Caption

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

Fiscal Notes

From the Legislative Budget Board: Passage of the bill would amend Chapters 312 and 313 of the Tax Code to prohibit wind farm owners from receiving a property tax abatement through Chapter 312, or a property tax limitation through Chapter 313, if their wind turbines are located 25 nautical miles or less from a military aviation facility located in Texas. 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

SB 277 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 25 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

SB 277 modifies an existing tax incentive program for wind-powered energy production in order to remove an incentive for windmills to be placed within 30 miles of a military aviation facility because windmills can negatively interfere with military aviation. 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 SB 277.

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

Organizations Supporting

City of Corpus Christi
City of El Paso
Texas Public Policy Foundation

Organizations Opposed

Clean Water Action
Environmental Defense Fund
The Wind Coalition