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.

 Predetermined Equipment List Advisory Group

 Previously Approved Pollution Control Property (By Industry)

  The Predetermined Equipment List (PEL) sorted alphabetically (PDF) or numerically (PDF) (Help with PDF) .

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 or political subdivisions must both:

1.       Apply for and receive a positive use determination, from the TCEQ, that the property is used for pollution control purposes.

2.       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.

A political subdivision may pay for the pollution control property by increasing its rollback tax rate by the amount that generates the funds and is equal to the amount spent out of its maintenance and operation funds. The TCEQ is not involved in calculating the rollback tax rate. Once a political subdivision receives a positive use determination from the TCEQ, the subdivision should calculate the rollback tax rate using the instructions provided by the Texas Comptroller of Public Accounts in Truth in Taxation: Guide for Setting Tax Rates .

When applying, political subdivisions should remember that the statute governing this program states that eligibility is for money spent out of the maintenance and operations funds for pollution control property as defined in section 23.045(b) of the statute. This definition includes land, structure, building, installation, excavation, machinery, equipment, and device. It does not include costs associated with personnel.

The following types of property are not eligible:

For commercial waste facilities, the statute does not allow property to receive an the exemption solely because a facility:

While land is eligible, only the part that actually contains the pollution control property is eligible; land used solely as a buffer zone is not 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:

The TCEQ has a list of equipment it determined is either wholly or partly pollution control property. Most of the property in the PEL is rated at 100 percent pollution control. For equipment rated at less than 100 percent (’partial“), TCEQ staff has determined the appropriate percentages that qualify as pollution control property. For a copy of the PEL, see Appendix A of the guidance document or contact TCEQ program staff The PEL is generic and does not specify any particular brand or manufacturer.

Property which is not used solely for pollution control 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 cost analysis procedure described in the guidance document.

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.

There are three tiers of application fees:

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 and III 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.

If you need help or have questions, contact the Tax Relief Program:

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:  512/239-3143, 512/239-6348, or 512/239-1917
Fax:  512/239-3165 or 512/239-6763