Yes, there are several incentives for installing a rainwater harvesting system at your home or business. There is also statewide support for rainwater harvesting equipment.
Property Tax Exemption for Commercial Installations (statewide exemption): A constitutional amendment passed as Proposition 2 by Texas voters in November 1993 exempted pollution control equipment, including water-conserving equipment at nonresidential buildings, from property taxes. Rainwater harvesting equipment at commercial installations is considered water-conserving equipment. To qualify for the property tax exemption, (1) a facility must first receive a determination from the TCEQ that the property is used for pollution control purposes, and (2) the applicant then submits this use determination to the local tax appraisal district to obtain the property tax exemption.
Sales Tax Exemption (statewide): Senate Bill 2 exempts rainwater harvesting equipment and supplies from sales tax.
Homeowners Associations: In Texas, HB 645, passed by the 78th Legislature in 2003, prevents homeowners associations from implementing new covenants banning outdoor water-conserving measures such as composting, water-efficient landscapes, drip irrigation, and rainwater harvesting installations. The legislation allows homeowners associations to require screening or shielding to obscure view of the tanks.