Relating to an exemption from ad valorem taxation of the amount of the appraised value of real property that arises from the installation or construction on the property of a generator that is primarily for the production and distribution of energy for on-site use.

SB 2393 creates a property tax exemption for the increased value of real property resulting from installing a qualifying on-site energy generator. It directly affects property owners who install generators powered by natural gas, propane, diesel, biodiesel, or hydrogen, fully enclosed as specified, and connected to a building’s electrical system for on-site energy use. The exemption applies to the appraised value increase caused by the generator installation, reducing the property tax burden for these specific systems. This change takes effect January 1, 2026, contingent on voter approval of a related constitutional amendment.