Texas property tax incentives for solar, wind, and storage (2026)
General information, not a substitute for the advice of an attorney.
For two decades, Texas solar and wind projects relied on two local property tax programs. One is gone, its replacement excludes renewables and batteries, and the other survived a serious attempt to end it in 2025. Here is where things stand.
| Program | Status for solar, wind, and storage |
|---|---|
| Chapter 313 (school district value limitations) | Expired December 31, 2022; existing agreements run until they end (Tax Code 313.007; Texas Comptroller) |
| JETI, Chapter 403 of the Government Code (its replacement) | Excludes non-dispatchable generation and electric energy storage (Gov't Code 403.602(8); Texas Comptroller) |
| Chapter 312 (county, city, and special district abatements) | Still available; a 2025 proposal to ban it for large wind and solar was dropped (SB 819 as passed by the Senate; LegiScan) |
Chapter 313 expired
Chapter 313 let school districts limit the taxable value of large projects. It expired at the end of 2022 (Tax Code 313.007); agreements already signed stay in force until they end (Texas Comptroller). Renewable energy projects made up the majority of its projects (Texas Comptroller); one analysis puts renewables and battery storage at about two-thirds of its awardees (Grant Thornton).
JETI replaced it, without renewables
The Jobs, Energy, Technology and Innovation Act (HB 5, 2023) created Subchapter T of Government Code Chapter 403, effective January 1, 2024 (HB 5). It expressly excludes non-dispatchable electric generation facilities and electric energy storage facilities (Gov't Code 403.602(8)); the Comptroller's office confirms renewable energy projects are excluded (Texas Comptroller). Projects that do qualify have their taxable value for school district maintenance and operations taxes cut by 50% (75% in a qualified opportunity zone) for 10 years (Gov't Code 403.605; Texas Comptroller). Applications go to the Comptroller (Gov't Code 403.607), and the Governor's office and the school district must both approve the agreement (Gov't Code 403.610, 403.611; Texas Comptroller). The Comptroller posts executed agreements (JETI applications).
Chapter 312 abatements are still available
Chapter 312 lets cities, counties, and special districts, but not school districts, offer property tax abatements of up to 10 years (Texas Comptroller). Renewable developers have relied heavily on it (POWER Magazine), and with Chapter 313 gone it is the main local incentive left to them. The Legislature extended the program in 2019 (HB 3143) through September 1, 2029, so it will need to be renewed again (HB 3143; Tax Code 312.006).
In 2025, Senate Bill 819 as filed would have prohibited Chapter 312 abatements for renewable generation facilities of 10 megawatts or more (Senate Research Center). The Senate removed that ban before passing a narrower permitting bill, and that version died in a House committee (SB 819 as passed by the Senate; LegiScan). Similar proposals have come up in past sessions and could return when the Legislature meets again in January 2027.
What this means for a project
- Local abatements are negotiated case by case with each taxing unit, so start conversations with the county early.
- New wind, solar, and storage projects cannot get a school district value limitation under either Chapter 313 or JETI.
- Chapter 312 itself expires September 1, 2029 unless the Legislature renews it (Tax Code 312.006).
- Landowners still pay taxes on their own land. Texas A&M AgriLife recommends leases require the developer to pay taxes on its equipment and any added land taxes, including rollback (Texas A&M AgriLife). See ag valuation and rollback taxes.
- Watch the 2027 session. Incentives and siting rules for renewables have been contested in recent sessions.
Summarized from the statutes and analyses linked above. Not legal or tax advice; confirm current law with the Comptroller and qualified counsel.
Related: Texas permits by county · ERCOT interconnection · Decommissioning law
Sources and helpful links
- Tax Code 313.007 statutes.capitol.texas.gov
- Texas Comptroller comptroller.texas.gov
- Gov't Code 403.602(8) capitol.texas.gov
- SB 819 as passed by the Senate capitol.texas.gov
- LegiScan legiscan.com
- Grant Thornton grantthornton.com
- Texas Comptroller comptroller.texas.gov
- JETI applications comptroller.texas.gov
- Texas Comptroller comptroller.texas.gov
- POWER Magazine powermag.com
- HB 3143 capitol.texas.gov
- Tax Code 312.006 statutes.capitol.texas.gov
- Senate Research Center capitol.texas.gov
- Texas A&M AgriLife mytexas.ag.tamu.edu
More official contacts and resources: Helpful links.