The TCEQ is
responsible for determining whether a facility or political
subdivision uses certain property, in whole or in part, for
pollution control purposes (referred to as a “use
determination”) and whether it may apply for a property-tax
exemption with its local appraisal district. The intent of this
program is to ensure that capital investments undertaken to comply
with environmental regulations do not result in an increase in
property taxes. The rules governing the program are found in
30 Texas Administrative Code 17. 
Updates Effective February 7, 2008
Help with downloading
files:
For updates specific to political subdivisions,
contact the TCEQ.
Getting a Use Determination
The pollution control property must be used, constructed, acquired,
or installed wholly or partly to comply with local, state, or
federal regulations for preventing, monitoring, controlling, or
reducing air, water, or land pollution.
Facilities:
- Apply for and receive a positive
use determination, from the TCEQ,
that the property is used for pollution control purposes.
- File the use determination with its local appraisal district to
receive a property-tax exemption.
Important: The TCEQ
does not file the exemption; that is the
applicant’s responsibility.
Types of Property Not Eligible
The following types of property are not eligible:
- motor vehicles
- residential property
- property for recreational, park, or scenic uses
- property subject to a tax-abatement agreement executed before
January 1, 1994, except for property acquired, constructed, or
installed after the agreement has expired.
For commercial waste facilities, the statute does
not allow property to receive an the exemption
solely because a facility:
- manufactures or produces a product used in pollution control;
or
- provides a service that monitors, controls, or reduces
pollution.
While land is eligible, only the part that actually contains
only pollution control property or that is used solely for
pollution control purposes is eligible; land used solely as a
buffer zone is not eligible.
Types of Property that Are Eligible
Property must be wholly or partly used for pollution control to
be eligible. It must have been purchased or installed after January
1, 1994, and must meet or exceed a federal, state, or local
environmental regulation. The following specific types of property
are also eligible for determination:
- dedicated-purpose vehicles used solely for pollution control
(vacuum trucks, street sweepers, surface-watering trucks,
spill-response vehicles);
- land (acquired after January 1, 1994) with pollution control
property (e.g., the actual square footage containing a baghouse,
scrubber, settling pond, or wastewater containment); and
- used equipment (if it has been acquired, constructed, or
installed by the new owner after January 1, 1994 and if it has not
been taxable by the property’s taxing unit).
Equipment and Categories List (ECL)
The Equipment and Categories List (ECL) is a two part list of
pollution control property.
Part A of the ECL consists of a list of
property which the TCEQ
has previously evaluated and determined to be either wholly or
partly pollution control property. This list was previously called
the predetermined equipment list. Most of the property on Part A is
listed at 100 percent. For items listed at less than 100 percent
TCEQ
staff has determined the appropriate percentages.
Part B of the ECL consists of the 18 categories
of property listed in §11.31(k), Texas Tax Code. The
categories are listed with a V in the use-determination percentage
column to signify that items which fall within one of the 18
categories will be reviewed on an application by application
basis.
For a copy of the ECL, see the
program information document or contact staff. The ECL is generic and does not specify
any particular brand or manufacturer.
Part B of the ECL
Use determination percentages for items located on Part B of the
ECL may be calculated using the Cost Analysis Procedure (CAP)
described in the
program information document or applicants may propose a
different calculation method. The purpose of the calculation is to
determine the percentage of the property which is being used for
pollution control. If an alternative method is proposed the
applicant must submit supporting documentation to show the method
is more effective then the CAP.
Partial Determinations
Property which is not used solely for pollution control and is
not listed in one of the categories located on Part B of the
Equipment and Categories List is eligible for only a partial use
determination. This includes property that has both an
environmental benefit and a production increase or process
improvement. There may also be a by-product generated that has
resale or reuse value. An example: replacing a process reactor
vessel with one that produces a higher-quality product at a higher
or more efficient production rate, and also generates fewer waste
streams or air emissions. The environmental benefits make it
eligible for a partial determination. Partial determinations, or
Tier III applications, must use the CAP described in the
program information document.
Appealing a Determination
An applicant, or the chief appraiser of the county where the
property is located, may appeal a use determination. A written
request must be received by the TCEQ Chief
Clerk within 20 days of receiving the
determination. The appeal must contain the Use
Determination application number, the name of the applicant, name
of facility, the appropriate appraisal district, and the basis for
the appeal.
Application Fees
There are four tiers of application fees:
- Tier I: for property listed on Part A of the Equipment
and Categories List (ECL), with no variances requested on that
determination. All property listed on the application must be
located on Part A of the ECL or must be necessary for the
installation or operation of property located on Part A of the ECL.
The fee is $150.
- Tier II: for property not on the ECL
and used 100 percent for pollution control, the fee is
$1,000.
- Tier III: for property not on the ECL
and partially used for pollution control, the fee is $2,500.
Tier IV: for property located in one of the
categories listed in Part B of the ECL. All property listed on the
application must be located on Part B of the ECL or must be
necessary for the installation or operation of property listed on
Part B of the ECL. The Fee is $500.
The fee must be remitted with the application, or the
application will be considered incomplete and will not be reviewed
until the TCEQ
receives the fee. The higher fees for Tiers II, III, and IV cover
the cost of processing these more complicated applications.
If your business owes any delinquent fees or penalties to the
TCEQ,
your application will not be processed until they are paid.
Contact for Assistance
TCEQ
Tax Relief for Pollution Control Property (MC-110)
P.O. Box 13087
Austin, TX 78711-3087
E-mail: txrelief@tceq.state.tx.us
Phone: 512-239-3100
Fax: 512-239-5678
