89S20137 PRL-F     By: Gervin-Hawkins H.B. No. 294       A BILL TO BE ENTITLED   AN ACT   relating to an exemption from ad valorem taxation of the amount of   the appraised value of certain residential real property that   arises from the installation in the property of certain energy   efficiency-related improvements.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by   adding Section 11.272 to read as follows:          Sec. 11.272.  ENERGY EFFICIENCY-RELATED IMPROVEMENTS TO   RESIDENTIAL REAL PROPERTY.  (a)  In this section, "energy   efficiency-related improvement" means an improvement or technology   that reduces the amount of energy needed to perform the basic   functions of a property, including:                (1)  a high-efficiency heating, ventilation, and air   conditioning system;                (2)  a central air conditioning demand response   technology;                (3)  a high-efficiency heat pump;                (4)  attic insulation;                (5)  a radiant barrier;                (6)  a smart thermostat;                (7)  a high-efficiency water heater;                (8)  an electric vehicle charging demand response   technology;                (9)  high-efficiency windows; and                (10)  the sealing or resealing of doors, windows, or   other openings.          (b)  A person is entitled to an exemption from taxation of   the amount of the appraised value of residential real property   owned by the person that arises from the installation in the   property of an energy efficiency-related improvement if:                (1)  the original construction of the property was   completed before January 1, 2011; and                (2)  the improvement was installed on or after January   1, 2027.          (c)  The comptroller, with the assistance of the State Energy   Conservation Office or its successor, shall develop guidelines to   assist local officials in the administration of this section.          SECTION 2.  If the constitutional amendment proposed by   H.J.R. 34, 89th Legislature, Regular Session, 2025, is approved by   the voters and the constitutional amendment proposed by H.J.R. 133,   89th Legislature, Regular Session, 2025, is not approved by the   voters, Section 11.43(c), Tax Code, as amended by H.B. 2730, Acts of   the 89th Legislature, Regular Session, 2025, H.B. 1620, Acts of the   89th Legislature, Regular Session, 2025, and effective September 1,   2025, and H.B. 247, Acts of the 89th Legislature, Regular Session,   2025, and effective January 1, 2026, is reenacted and amended to   read as follows:          (c)  An exemption provided by Section 11.13, 11.131, 11.132,   11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,   11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,   11.254, 11.27, 11.271, 11.272, 11.29, 11.30, 11.31, 11.315, 11.35,   11.36, 11.37, or 11.38, once allowed, need not be claimed in   subsequent years, and except as otherwise provided by Subsection   (e), the exemption applies to the property until it changes   ownership or the person's qualification for the exemption changes.     However, except as provided by Subsection (r), and subject to   Subsection (c-1), the chief appraiser may require a person allowed   one of the exemptions in a prior year to file a new application to   confirm the person's current qualification for the exemption by   delivering a written notice that a new application is required,   accompanied by an appropriate application form, to the person   previously allowed the exemption.  If the person previously allowed   the exemption is 65 years of age or older, the chief appraiser may   not cancel the exemption due to the person's failure to file the new   application unless the chief appraiser complies with the   requirements of Subsection (q), if applicable.          SECTION 3.  If the constitutional amendment proposed by   H.J.R. 133, 89th Legislature, Regular Session, 2025, is approved by   the voters and the constitutional amendment proposed by H.J.R. 34,   89th Legislature, Regular Session, 2025, is not approved by the   voters, Section 11.43(c), Tax Code, as amended by H.B. 2730, Acts of   the 89th Legislature, Regular Session, 2025, H.B. 1620, Acts of the   89th Legislature, Regular Session, 2025, and effective September 1,   2025, and H.B. 2508, Acts of the 89th Legislature, Regular Session,   2025, and effective January 1, 2026, is reenacted and amended to   read as follows:          (c)  An exemption provided by Section 11.13, 11.131, 11.132,   11.133, 11.134, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183,   11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),   11.231, 11.254, 11.27, 11.271, 11.272, 11.29, 11.30, 11.31, 11.315,   11.35, 11.36, or 11.37, once allowed, need not be claimed in   subsequent years, and except as otherwise provided by Subsection   (e), the exemption applies to the property until it changes   ownership or the person's qualification for the exemption changes.     However, except as provided by Subsection (r), and subject to   Subsection (c-1), the chief appraiser may require a person allowed   one of the exemptions in a prior year to file a new application to   confirm the person's current qualification for the exemption by   delivering a written notice that a new application is required,   accompanied by an appropriate application form, to the person   previously allowed the exemption.  If the person previously   allowed the exemption is 65 years of age or older, the chief   appraiser may not cancel the exemption due to the person's failure   to file the new application unless the chief appraiser complies   with the requirements of Subsection (q), if applicable.          SECTION 4.  If both the constitutional amendment proposed by   H.J.R. 34, 89th Legislature, Regular Session, 2025, and the   constitutional amendment proposed by H.J.R. 133, 89th Legislature,   Regular Session, 2025, are approved by the voters, Section   11.43(c), Tax Code, as amended by H.B. 2730, Acts of the 89th   Legislature, Regular Session, 2025, H.B. 1620, Acts of the 89th   Legislature, Regular Session, 2025, and effective September 1,   2025, and H.B. 247 and H.B.  2508, Acts of the 89th Legislature,   Regular Session, 2025, and effective January 1, 2026, is reenacted   and amended to read as follows:          (c)  An exemption provided by Section 11.13, 11.131, 11.132,   11.133, 11.134, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183,   11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),   11.231, 11.254, 11.27, 11.271, 11.272, 11.29, 11.30, 11.31, 11.315,   11.35, 11.36, 11.37, or 11.38, once allowed, need not be claimed in   subsequent years, and except as otherwise provided by Subsection   (e), the exemption applies to the property until it changes   ownership or the person's qualification for the exemption changes.     However, except as provided by Subsection (r), and subject to   Subsection (c-1), the chief appraiser may require a person allowed   one of the exemptions in a prior year to file a new application to   confirm the person's current qualification for the exemption by   delivering a written notice that a new application is required,   accompanied by an appropriate application form, to the person   previously allowed the exemption.  If the person previously allowed   the exemption is 65 years of age or older, the chief appraiser may   not cancel the exemption due to the person's failure to file the new   application unless the chief appraiser complies with the   requirements of Subsection (q), if applicable.          SECTION 5.  If neither the constitutional amendment proposed   by H.J.R. 34, 89th Legislature, Regular Session, 2025, nor the   constitutional amendment proposed by H.J.R. 133, 89th Legislature,   Regular Session, 2025, is approved by the voters, Section 11.43(c),   Tax Code, as amended by H.B. 2730, Acts of the 89th Legislature,   Regular Session, 2025, and H.B. 1620, Acts of the 89th Legislature,   Regular Session, 2025, and effective September 1, 2025, is   reenacted and amended to read as follows:          (c)  An exemption provided by Section 11.13, 11.131, 11.132,   11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,   11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,   11.254, 11.27, 11.271, 11.272, 11.29, 11.30, 11.31, 11.315, 11.35,   11.36, or 11.37, once allowed, need not be claimed in subsequent   years, and except as otherwise provided by Subsection (e), the   exemption applies to the property until it changes ownership or the   person's qualification for the exemption changes.  However, except   as provided by Subsection (r), and subject to Subsection (c-1), the   chief appraiser may require a person allowed one of the exemptions   in a prior year to file a new application to confirm the person's   current qualification for the exemption by delivering a written   notice that a new application is required, accompanied by an   appropriate application form, to the person previously allowed the   exemption.  If the person previously allowed the exemption is 65   years of age or older, the chief appraiser may not cancel the   exemption due to the person's failure to file the new application   unless the chief appraiser complies with the requirements of   Subsection (q), if applicable.          SECTION 6.  This Act applies only to a tax year that begins   on or after the effective date of this Act.          SECTION 7.  This Act takes effect January 1, 2027, but only   if the constitutional amendment proposed by the 89th Legislature,   2nd Called Session, 2025, to authorize the legislature to provide   for an exemption from ad valorem taxation of the amount of the   market value of residential real property that arises from the   installation in the property of certain energy efficiency-related   improvements is approved by the voters.  If that amendment is not   approved by the voters, this Act has no effect.