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 specific reinvestment zones. The bill introduces a new section, 311.0086, which allows municipalities and counties to enter into agreements with school districts for the allocation of tax increment fund revenues. This applies to reinvestment zones created after January 1, 2005, by municipalities or after January 1, 2022, by counties, provided they meet certain criteria, such as being larger than 500 acres and containing a tract of land donated for educational facilities. The bill enables these local governments to finance the acquisition, construction, or reconstruction of educational facilities, either within or outside the zone.

Additionally, the bill amends Section 48.253(a) of the Education Code to ensure that school districts receive state aid equivalent to the amount they contribute to the tax increment fund under the new section. This change will take effect starting with the 2025-2026 school year. The bill is designed to facilitate collaboration between local governments and school districts, ultimately aiming to improve educational infrastructure through the strategic use of tax increment financing. The act will take effect immediately if it secures a two-thirds majority vote in both houses; otherwise, it will become effective on September 1, 2025.

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