The bill, H.B. No. 3076, amends Section 351.1015(b) of the Texas Tax Code to expand the criteria for municipalities eligible to use certain tax revenue for qualified projects. The updated language specifies that the section applies to municipalities with populations of at least 700,000 but less than 950,000, those containing more than 70% of a county's population of 1.5 million or more, and municipalities with populations of at least two million. Additionally, it introduces new categories for municipalities with populations of 200,000 or more and those described by specific sections of the Tax Code.

The bill also includes several deletions and insertions to clarify the eligibility criteria. Notably, it removes previous references to certain population thresholds and adds new definitions to ensure that a broader range of municipalities can access the tax revenue for qualified projects. The act is set to take effect on September 1, 2025, and it will take precedence over any conflicting legislation from the 89th Legislature, Regular Session, 2025.