Guides › Tax incentives
Texas property tax incentives for solar, wind, and storage projects (2026)
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 (Grant Thornton) |
| JETI, Chapter 403 of the Government Code (its replacement) | Excludes non-dispatchable generation and electric energy storage (Grant Thornton; Texas Comptroller) |
| Chapter 312 (county, city, and special district abatements) | Still available; a 2025 bill to ban it for large wind and solar died (LegiScan) |
Chapter 313 expired
Chapter 313 let school districts limit the taxable value of large projects. It expired at the end of 2022, and renewable energy and battery projects had made up about two-thirds of its agreements (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 (Ryan). It expressly excludes non-dispatchable electric generation facilities and electric energy storage facilities (Grant Thornton); the Comptroller's office confirms renewable energy projects are excluded (Texas Comptroller). Projects that do qualify generally receive a 50% abatement, more in designated opportunity zones (Texas Tribune), and apply to the Comptroller rather than directly to a school district (Ryan). The Comptroller posts executed agreements (JETI applications).
Chapter 312 abatements are still available
Chapter 312 lets counties, cities, and special districts offer property tax abatements to qualifying projects, and it has been the main way renewable projects negotiate local tax breaks (KE Andrews). The Legislature extended the program in 2019 (The Well News).
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). It passed the Senate but died in the House (pv magazine; 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.
- 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