The bill, H.B. No. 2877, amends the definition of a "project financing zone" within the Texas Tax Code, specifically Section 351.1015(a)(4). The new language clarifies that a project financing zone can be designated by a municipality either by ordinance or through an agreement under Chapter 380 of the Local Government Code. It specifies that the boundaries of such a zone must be within a three-mile radius of the center of a qualified project, or, if designated by certain municipalities, can include a contiguous geographic area that does not exceed the maximum area allowed under the three-mile radius condition.

Additionally, the bill requires that the designation of the project financing zone must include specific details regarding the boundaries, including the longitude and latitude for zones defined by the three-mile radius, or the exact boundaries for contiguous areas. The designation of the project financing zone is set to expire no later than 30 years from the date of its designation. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Tax Code 351.1015 (Tax Code 351)