Renewable Energy Incentives | Fort Bend Economic Development Council
Summary

Tax Code Section 171.056 extends a franchise tax exemption to manufacturers, sellers, or installers of solar energy de- vices. The state also permits a corporate deduction from the state’s franchise tax for renewable energy sources. Business owners may deduct the cost of the system from the company’s taxable capital or deduct 10 percent from the company’s income.

Wind and Solar Energy Tax Exemptions and Deductions

Wind energy qualifies under the term “solar energy” for the exemption and deduction under Sections 171.056 and 171.107. For more information on the tax exemption, visit the State Energy Conservation Office’s web site at http://www.seco.cpa.state.tx.us/re/incentives-taxcode-statutes.php or contact the Comptroller of Public Accounts.

Texas property tax code permits a 100 percent exemption on the appraised value of solar, wind or biomass energy devices installed or constructed for the production and use of energy on-site.

See Texas property tax Form 50-123, “Exemption Application for Solar or Wind-Powered Energy Devices” to claim this exemption.

Texas also offers a loan program for eligible efficiency technologies. The “LoanSTAR” program is available to schools, hospitals and local governments. The low interest loans are capped at a $5 million maximum and are required to meet certain technical guidelines including a detailed energy assessment report.

  • Franchise tax questions: (800) 531-5441, ext. 5-9952 or (512) 305-9952

  • Property tax questions: (800) 531-5441, ext. 5-9806 or (512) 305-9806