House Bill No. 2878 proposes amendments to the Texas Tax Code and Education Code to enhance the use of revenue from tax increment funds for certain reinvestment zones, specifically for the acquisition, construction, or reconstruction of educational facilities. The bill introduces a new section, 311.0086, which outlines the criteria for reinvestment zones eligible for these provisions, including requirements related to the size of the zone, the donation of land for educational purposes, and agreements with school districts regarding tax increment payments. Municipalities and counties are granted the authority to enter into agreements with school districts to allocate tax increment fund revenues for educational facility projects.

Additionally, the bill amends Section 48.253(a) of the Education Code to ensure that school districts receive state aid equivalent to the amounts they are required to contribute to the tax increment fund under the new provisions. This change will take effect starting with the 2025-2026 school year. The bill is set to become effective immediately upon receiving a two-thirds majority vote in both houses of the legislature, or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Education Code 48.253 (Education Code 48)