TITLE: Relating to the determination of the market value of solar energy property for ad valorem tax purposes.

SUMMARY: Relating to the determination of the market value of solar energy property for ad valorem tax purposes.

FULL TEXT:
AN ACT relating to the determination of the market value of solar energy property for ad valorem tax purposes. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 23.26(d), Tax Code, is amended to read as follows: (d) To determine the market value of solar energy property using the cost method of appraisal, the chief appraiser shall: (1) use cost data obtained from generally accepted sources; (2) make any appropriate adjustment for physical, functional, or economic obsolescence and any other justifiable factor; and (3) calculate the depreciated value of the property by using a useful life of not less than 35 [that does not exceed 10] years. SECTION 2. Section 23.26(d), Tax Code, as amended by this Act, applies only to the appraisal for ad valorem tax purposes of solar energy property for a tax year that begins on or after the effective date of this Act. SECTION 3. This Act takes effect January 1, 2026.