S.B. No. 277
AN ACT Relating to the eligibility of certain property for certain ad
valorem tax incentives relating to wind-powered energy devices.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The legislature finds that:
(1) the Texas Military Preparedness Commission has
found that military installations located in this state generate
$136 billion in economic activity each year and directly or
indirectly contribute to the existence of almost 900,000 jobs;
(2) military aviation facilities in this state are of
vital importance to the security of this state and the nation and
are an integral part of this state’s economy;
(3) the area surrounding a military aviation facility
is sensitive to security concerns and requires special attention by
this state;
(4) wind-powered energy devices and wind energy are
important components of this state’s production of electricity; and
(5) the United States Department of Defense uses the
base realignment and closure process to reorganize the department’s
base structure and has used the process to close more than 350
military bases since 1988.
(b) This Act is for the purposes of:
(1) promoting the public health, safety, and general
welfare of this state;
(2) protecting and preserving military aviation
facilities, the areas surrounding those facilities, and the
aviation operations or training conducted at those facilities from
any unintended consequences occurring as a result of the
installation or construction of wind-powered energy devices on
property located in close proximity to the boundaries of those
facilities;
(3) encouraging the development of wind farms and the
installation or construction of wind-powered energy devices in this
state under reasonable state regulations that recognize the
importance of wind energy and take into account the need to support
and protect military aviation facilities located in this state from
the United States Department of Defense’s base realignment and
closure process;
(4) ensuring that an owner of property on which
wind-powered energy devices were constructed, or were under
construction, before September 1, 2017, and that is located in
close proximity to the boundaries of a military aviation facility
continues to be eligible to receive tax benefits under Chapter 312
or 313, Tax Code; and
(5) allowing an owner of property located in close
proximity to the boundaries of a military aviation facility to
continue to allow the installation or construction of wind-powered
energy devices on that property in the event the owner elects not to
seek tax benefits for that property under Chapter 312 or 313, Tax
Code.
(c) This Act may not be construed as limiting the ability of
a person to receive a tax benefit under Chapter 312 or 313, Tax
Code, for property that the person owns and on which a wind-powered
energy device is installed or constructed other than under the
conditions relating to the proximity of that property to a military
aviation facility as expressly provided by this Act.
SECTION 2. Subchapter A, Chapter 312, Tax Code, is amended
by adding Section 312.0021 to read as follows:
Sec. 312.0021. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN
PROPERTY NEAR MILITARY AVIATION FACILITY. (a) In this section:
(1) “Military aviation facility” means a base,
station, fort, or camp at which fixed-wing aviation operations or
training is conducted by the United States Air Force, the United
States Air Force Reserve, the United States Army, the United States
Army Reserve, the United States Navy, the United States Navy
Reserve, the United States Marine Corps, the United States Marine
Corps Reserve, the United States Coast Guard, the United States
Coast Guard Reserve, or the Texas National Guard.
(2) “Wind-powered energy device” has the meaning
assigned by Section 11.27.
(b) Notwithstanding any other provision of this chapter, an
owner or lessee of a parcel of real property that is located wholly
or partly in a reinvestment zone may not receive an exemption from
taxation of any portion of the value of the parcel of real property
or of tangible personal property located on the parcel of real
property under a tax abatement agreement under this chapter that is
entered into on or after September 1, 2017, if, on or after that
date, a wind-powered energy device is installed or constructed on
the same parcel of real property at a location that is within 25
nautical miles of the boundaries of a military aviation facility
located in this state. The prohibition provided by this section
applies regardless of whether the wind-powered energy device is
installed or constructed at a location that is in the reinvestment
zone.
(c) The prohibition provided by this section does not apply
if the wind-powered energy device is installed or constructed as
part of an expansion or repowering of an existing project.
SECTION 3. Section 313.024, Tax Code, is amended by adding
Subsection (b-1) to read as follows:
(b-1) Notwithstanding any other provision of this
subchapter, an owner of a parcel of land that is located wholly or
partly in a reinvestment zone, a new building constructed on the
parcel of land, a new improvement erected or affixed on the parcel
of land, or tangible personal property placed in service in the
building or improvement or on the parcel of land may not receive a
limitation on appraised value under this subchapter for the parcel
of land, building, improvement, or tangible personal property under
an agreement under this subchapter that is entered into on or after
September 1, 2017, if, on or after that date, a wind-powered energy
device is installed or constructed on the same parcel of land at a
location that is within 25 nautical miles of the boundaries of a
military aviation facility located in this state. The prohibition
provided by this subsection applies regardless of whether the
wind-powered energy device is installed or constructed at a
location that is in the reinvestment zone.
SECTION 4. Section 313.024(e), Tax Code, is amended by
adding Subdivisions (8) and (9) to read as follows:
(8) “Military aviation facility” has the meaning
assigned by Section 312.0021.
(9) “Wind-powered energy device” has the meaning
assigned by Section 11.27.
SECTION 5. Notwithstanding Sections 312.0021 and
313.024(b-1), Tax Code, as added by this Act, the change in law made
by this Act does not apply to a tax abatement agreement under
Chapter 312, Tax Code, or an application for a limitation on
appraised value under Chapter 313, Tax Code, the approval of which
is pending on the effective date of this Act.
SECTION 6. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 277 passed the Senate on
April 19, 2017, by the following vote: Yeas 22, Nays 9;
May 25, 2017, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 26, 2017, House
granted request of the Senate; May 28, 2017, Senate adopted
Conference Committee Report by the following vote: Yeas 19,
Nays 11.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 277 passed the House, with
amendments, on May 23, 2017, by the following vote: Yeas 134,
Nays 10, two present not voting; May 26, 2017, House granted
request of the Senate for appointment of Conference Committee;
May 28, 2017, House adopted Conference Committee Report by the
following vote: Yeas 97, Nays 47, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor