What this is
Texas law would let homeowners skip taxes on home value added by energy upgrades like new heat pumps or insulation.
Texas is considering a new law to encourage homeowners to make their homes more energy efficient. The proposal would let homeowners skip paying taxes on the extra value their property gains from energy upgrades. This applies to homes built before January 1, 2011 that receive upgrades on or after January 1, 2027.
The law lists 10 types of energy-saving improvements that qualify for the tax break. These include high-efficiency heat pumps, better insulation in attics, smart thermostats, energy-efficient water heaters, and upgraded windows. Homeowners can also qualify if they install technology that helps air conditioning systems respond to demand or electric vehicle chargers.
For example, if a homeowner installs a new heat pump that increases their home's appraised value by $5,000, they would not pay property taxes on that $5,000 increase. This makes energy upgrades more affordable and encourages families to make homes more comfortable while using less energy.
Read full text
The Texas Comptroller's office will work with the State Energy Conservation Office to create guidelines for local tax officials. These guidelines will help ensure the tax break is applied fairly across the state. Property owners who qualify need to apply just once, and the exemption stays in place unless they sell the home or no longer qualify.
Key details
- Eligible home age: Built before January 1, 2011
- Upgrade start date: January 1, 2027
- Sponsored by: Barbara Gervin-Hawkins
- Bill status: Introduced
About Texas Legislature
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 stat…
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How this affects households
Under $30,000
This tax break likely won't help much since most families at this income level can't afford big energy upgrades like new heat pumps or windows. You need money upfront to save money later.
$30,000-$60,000
Some families might afford smaller upgrades like smart thermostats or insulation, saving a modest amount on property taxes. The biggest barrier is still having cash for the improvements.
$60,000-$100,000
This income level can better afford energy upgrades and will see meaningful property tax savings. Families can invest in improvements knowing they won't pay extra taxes on the added home value.
Over $100,000
Higher-income homeowners benefit most since they can afford expensive upgrades like heat pumps and new windows. They'll save the most in property taxes because they can make the biggest investments.
How to get involved
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