The Heart of Texas (HTX) wind farm in McCulloch County has been completed by Scout Clean Energy, according to an announcement in North American Windpower but there could be tax revenue problems for local entities.

“HTX was completed on time and under budget, which is quite an achievement given the widespread disruption that COVID-19 has caused across the entire U.S. economy," said Michael Rucker, CEO and founder of Scout Clean Energy. "It is a real credit to Scout’s construction management team, our suppliers, contractors and financiers, who have worked tirelessly to finish the project.”   

Although the project was completed on time, there are concerns for many people – like the tax revenue that the school districts may not receive because of agreements to get this wind farm built.

Lohn Independent School District entered into a Chapter 313 agreement with the Heart of Texas Wind project, a 180-megawatt wind farm owned and operated by Scout Clean Energy.

According to documentation from the Texas Comptroller’s Office, the agreement capped HTX's taxable value at $15 million a year. Over the course of 10 years, ending in 2028-29, Lohn ISD will lose nearly $9 million in tax revenue that the district would have reaped from HTX had there been no Chapter 313 agreement.

A Chapter 313 agreement with a school district is an appraised value limitation, which allows a taxpayer to build or install property and create jobs in exchange for a 10-year limitation on the taxable property value for school district maintenance and operations tax purposes, according to the Texas Comptroller’s Office. 

North American Windpower reports that there were tax agreements in place with multiple entities, including McCulloch County, McCulloch County Hospital District and Lohn Independent School District. The county could receive approximately $36 million in tax revenue over the life of the project.