Texas Proposes Tax Break for Energy-Efficient Homes

Texas may let homeowners skip taxes on home value gained from energy-saving upgrades.

By Texas Legislature -- Apr 13, 2026

Texas Proposes Tax Break for Energy-Efficient Homes

Overview

Texas is considering a constitutional amendment that could help homeowners save money on property taxes. The proposal, called HJR 38, would let the state legislature create a tax break for homeowners who make energy-efficient upgrades to their homes.

Right now, when homeowners add solar panels, better insulation, new windows, or other energy-saving improvements, their homes increase in value. This higher value usually means higher property taxes. HJR 38 would change this. If passed, homeowners could exclude the value added by these improvements from their property tax bills.

The amendment would give the legislature power to define what counts as an "energy efficiency-related improvement" and to set rules for who qualifies. This flexibility allows future lawmakers to adjust the program as new technologies emerge and costs change.

Voters will decide on this proposal on May 2, 2026. The measure is sponsored by State Representative Barbara Gervin-Hawkins. If Texas voters approve, the legislature can then create the specific rules and details of how the tax exemption works.

This policy supports families trying to lower their energy bills and reduce pollution. It also makes green upgrades more affordable by reducing the tax hit that comes with making a home more efficient.

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About the source

The Texas Legislature is the state legislature of Texas, consisting of the House of Representatives with 150 members and the Senate with 31 members. Meeting in regular session every two years, the legislature passes state laws, sets the budget, and shapes policies affecting all 30 million Texans.

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