HB 294 creates a property tax exemption for residential homeowners in Texas who install qualifying energy efficiency improvements after January 1, 2027. The exemption applies only to properties built before 2011 and covers the increased tax value resulting from improvements like high-efficiency HVAC systems, insulation, smart thermostats, or solar-ready windows. Homeowners must install these upgrades after 2027 to qualify, and the comptroller will develop guidelines to help local tax officials administer the exemption. This policy directly affects existing residential property owners seeking to reduce long-term tax burdens through energy-efficient home upgrades.
HB 74 would prohibit Texas local governments (including cities, counties, school districts, and special districts) from using public funds - such as taxes, grants, or donations - to plan, create, or operate most environmental projects. Exceptions include projects required by law, flood control, renewable energy infrastructure for their own facilities, waste management, and energy efficiency improvements at public buildings. The bill defines "environmental project" broadly as efforts to reduce emissions, pollutants, or raise public awareness, but explicitly excludes initiatives like electric vehicle charging stations or vehicle emission reduction programs. This legislation, filed in 2025, would take effect 91 days after the legislative session ends.
This bill proposes a constitutional amendment to allow Texas lawmakers to create a property tax exemption for the increased value of residential homes resulting from energy efficiency upgrades, such as solar panels or improved insulation. It would authorize the legislature to define eligible improvements and set requirements for the exemption. The amendment requires voter approval in the May 2026 election. If passed, it would enable local governments to reduce property tax assessments for homeowners who install qualifying energy-saving features.
