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Texas continues to attract massive investment—from data centers and distribution hubs to advanced manufacturing and clean energy facilities. With billions in development activity underway, property owners and developers have a unique opportunity to take advantage of valuable tax incentives tied to energy-efficient construction.
While most of the focus lands on programs like the Texas Enterprise Fund, recent changes under the One Big Beautiful Bill Act (OBBBA) have left people wondering what is still available and has made timing even more urgent when it comes to claiming federal energy incentives.
If you’ve already undergone or are planning a new build, expansion, or major retrofit in Texas, now’s the time to understand how tax credits and deductions can support your bottom line.
Texas is experiencing a surge of business investments across industries like manufacturing, logistics, data infrastructure, and vehicle electrification. These projects are generating thousands of jobs and billions in capital investment—making them ideal candidates for federal tax incentives such as the 179D Energy Efficient Commercial Buildings Deduction and the Investment Tax Credit (ITC).
TMEIC – Waller County
TMEIC Corporation Americas is establishing a new manufacturing plant in Waller County that will produce medium voltage drives and uninterruptible power supplies. The facility represents an initial capital investment exceeding $65 million and is expected to create over 60 new jobs.
JCB – San Antonio
Construction equipment manufacturer JCB is expanding its footprint in San Antonio by doubling the size of its in-progress facility. The factory will span over one million square feet and bring up to 1,500 new jobs to the region.
NXG Truck Bodies – Mount Pleasant
NXG Truck Bodies plans to open a new manufacturing site in Mount Pleasant. The $20 million facility will bring nearly 100 new jobs and expand the company’s production capacity for commercial vehicle bodies.
DSV – Laredo
Danish logistics provider DSV is building a massive 905,000-square-foot distribution center in Laredo. With an investment of more than $100 million, the facility will serve as a key trade hub near the U.S.-Mexico border and create nearly 180 jobs.
Kuehne+Nagel – Laredo
Kuehne+Nagel is significantly increasing its presence in Texas with a new 432,000-square-foot logistics facility in Laredo. The expansion will double the company’s regional capacity and support growing demand for cross-border freight operations.
Microsoft – San Antonio Area
Microsoft is deepening its presence in Texas with a new data center project near San Antonio. Valued at close to $1 billion, the development marks one of the largest tech infrastructure investments in the region.
Oppidan Investment Co. – Temple
Oppidan Investment Co. has announced plans to build a five-megawatt data center in Temple. With a budget of $31 million, the facility is expected to be completed by 2026 and bolster digital infrastructure in Central Texas.
Tesla – Waller County
Tesla is launching a large-scale battery storage manufacturing facility in Waller County. The new operation will occupy over a million square feet and is projected to add 1,500 jobs.
Envirotech Vehicles – Houston
Envirotech Vehicles is relocating its headquarters to Houston and opening a new production line for electric trucks and buses. The move reinforces the city's role as a growing hub for EV manufacturing and fleet modernization.
Many of these projects are already positioned to qualify for energy-efficient building tax incentives—even if sustainability wasn’t the driving force. That's because federal tax law rewards efficient systems and design choices that are now standard choice in commercial construction.
Whether you're using LED lighting, upgrading HVAC systems, or adding solar panels, your project may be eligible for meaningful deductions or credits through these programs.
Key Tax Incentives That Can Enhance Project ROI in Texas
The latest wave of development in Texas opens the door to tax-saving opportunities for developers, property owners, and investors. Here are the most impactful incentives to consider under the new rules:
⚠️ Important:
179D is terminating in 2026.
Only projects that begin construction before June 30, 2026 will be eligible (prior years could count). Requirements remain the same, but urgency is key for in-progress or upcoming builds.
⚠️ Important:
45L will expire mid-2026.
To qualify, units must be sold or leased before June 30, 2026. ENERGY STAR compliance remains the standard, but certain certification pathways have become more complex due to evolving EPA guidance.
3. Investment Tax Credit (ITC)
⚠️ Changes to Know:
This means Texas projects with large capex footprints—such as data centers, factories, or logistics hubs—can deduct qualified costs in year one, improving early cash flow.
Texas also offers a suite of state and local incentives that can stack with federal tax programs:
These programs can enhance project economics and further increase your return on investment.
These tax benefits require upfront planning. For example, missing prevailing wage documentation could reduce your 179D deduction by 80% or more. Similarly, omitting key steps for solar installations could shrink your ITC from 30% to just 6%.
Working with a tax incentive advisor like TaxTaker during design and procurement ensures you're meeting IRS requirements and capturing the full value available.
Texas is booming—and the window to maximize federal energy tax incentives is closing.
With 179D and 45L set to expire in 2026, and ITC beginning to phase out for solar and wind after 2027, developers need to act now. Planning ahead ensures you meet eligibility deadlines, avoid documentation pitfalls, and capture the full benefit your projects qualify for.
Bonus depreciation is here to stay. The rest? Not so much.
Let TaxTaker help you navigate these changes.
Book a call today to find out how energy tax incentives can power your next project in Texas.
Abby Massey is an expert in applying tax incentives for clean energy initiatives. With a B.S. in Civil Engineering from Purdue University and licenses in 46 states plus the District of Columbia, Abby offers significant expertise to her role at TaxTaker as the Vice President of Energy Incentives. Her experience includes certifying over 1,500 179D deductions, achieving more than $100 million in savings for clients. As a LEED Accredited Professional, Abby is dedicated to sustainable building practices. In her role at TaxTaker, she focuses on optimizing energy incentives for clients by leveraging her in-depth understanding of the 179D program, aiming to improve business sustainability and efficiency.
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