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