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Property Tax Funding Blog

Renewable Energy Systems Help Lower Texas Property Taxes

Posted by Matt Longhofer on Sun, Nov 07, 2010 @ 13:11 PM

Texas Gives Property Tax Exemptions on Properties with Renewable Energy Systems Texas property tax assistance

Originally Published By Grace

Renewable Energy and Property Tax Finances

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.

How Renewable Energy Helps with Property Taxes

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:

Property Tax Payer 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.

Topics: property tax help

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