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Texas Legislature· HB 2313Effective on 9/1/25

Relating to the authority of certain municipalities to use certain tax revenue for certain qualified projects, the official text

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H.B. No. 2313

AN ACT

relating to the authority of certain municipalities to use certain

tax revenue for certain qualified projects.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 351.1015(a)(4), Tax Code, is amended to

read as follows:

(4) "Project financing zone" means an area within a

municipality:

(A) that the municipality by ordinance or by

agreement under Chapter 380, Local Government Code, designates as a

project financing zone;

(B) the boundaries of which are:

(i) within a three-mile radius of the

center of a qualified project; or

(ii) if designated by a municipality

described by Section 351.001(7)(B) on or before December 31, 2024,

a continuous geographic area the total area of which is less than or

equal to the maximum area allowed under Subparagraph (i) that

contains the qualified project;

(C) the designation of which specifies:

(i) for a zone the boundaries of which are

prescribed by Paragraph (B)(i), the longitude and latitude of the

center of the qualified project; or

(ii) for a zone the boundaries of which are

prescribed by Paragraph (B)(ii), the exact boundaries of the zone;

and

(D) the designation of which expires not later

than the 30th anniversary of the date of designation.

SECTION 2. Section 351.1015(b), Tax Code, as amended by

Chapters 644 (H.B. 4559), 779 (H.B. 5012), 927 (S.B. 2220), and 1110

(S.B. 1057), Acts of the 88th Legislature, Regular Session, 2023,

is reenacted and amended to read as follows:

(b) This section applies only to a qualified project located

in:

(1) a municipality with a population of at least

700,000 but less than 950,000 according to the most recent federal

decennial census; [or]

(2) a municipality that contains more than 70 percent

of the population of a county with a population of 1.5 million or

more;

(3) [(2)] a municipality described by Section

351.001(7)(B);

(4) [or

[(3)] a municipality described by Section

351.152(61);

(5) [(2)] a municipality with a population of at least

two million; or

(6) a municipality described by Section 351.152(14)

with a population of more than 250,000.

SECTION 3. To the extent of any conflict, this Act prevails

over another Act of the 89th Legislature, Regular Session, 2025,

relating to nonsubstantive additions to and corrections in enacted

codes.

SECTION 4. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 2313 was passed by the House on May

14, 2025, by the following vote: Yeas 100, Nays 4, 2 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 2313 on May 28, 2025, by the following vote: Yeas 82, Nays 55,

1 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2313 was passed by the Senate, with

amendments, on May 26, 2025, by the following vote: Yeas 25, Nays

6.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor
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