Texas Tax Code 23.26 – Solar Energy Property
Current as of: 2024 | Check for updates
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(a) In this section, “solar energy property” means a “solar energy device” as defined by § 11.27(c)(1) that is used for a commercial purpose, including a commercial storage device, power conditioning equipment, transfer equipment, and necessary parts for the device and equipment.
(b) This section applies only to solar energy property that is constructed or installed on or after January 1, 2014.
Terms Used In Texas Tax Code 23.26
- Appraisal: A determination of property value.
- Market value: means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:
(A) exposed for sale in the open market with a reasonable time for the seller to find a purchaser;
(B) both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use; and
(C) both the seller and purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other. See Texas Tax Code 1.04 - Property: means real and personal property. See Texas Government Code 311.005
- Tax year: means the calendar year. See Texas Tax Code 1.04
(c) The chief appraiser shall use the cost method of appraisal to determine the market value of solar energy property.
(d) To determine the market value of solar energy property using the cost method of appraisal, the chief appraiser shall:
(1) use cost data obtained from generally accepted sources;
(2) make any appropriate adjustment for physical, functional, or economic obsolescence and any other justifiable factor; and
(3) calculate the depreciated value of the property by using a useful life that does not exceed 10 years.
(e) The chief appraiser may not in any tax year determine the depreciated value under Subsection (d)(3) to be less than 20 percent of the value computed after making appropriate adjustments under Subsection (d)(2) to the value determined under Subsection (d)(1).