Relating to an exemption from ad valorem taxation of the amount of the appraised value of residential real property that arises from the installation in the property of certain energy efficiency-related improvements.

HB 2039 creates a property tax exemption for homeowners in Texas who install specific energy efficiency improvements to their residential properties. The exemption applies to the increased appraised value of the home resulting from qualifying upgrades, such as high-efficiency HVAC systems, attic insulation, smart thermostats, or energy-efficient windows. Homeowners who install these improvements will not pay property taxes on the added value from the upgrades, reducing their tax burden. The exemption takes effect for the 2026 property tax year and applies to all eligible residential properties owned by qualifying individuals.