The bill 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. It specifies that the section applies to municipalities with populations of at least 700,000 but less than 950,000, municipalities that contain more than 70 percent of the population of a county with a population of 1.5 million or more, municipalities with a population of at least two million, and municipalities with a population of 200,000 or more that are described by Section 351.152(15). The bill also retains references to municipalities described by Sections 351.001(7)(B) and 351.152(61).

Additionally, the bill clarifies that it prevails over any conflicting legislation from the 89th Legislature, Regular Session, 2025, regarding nonsubstantive additions and corrections to enacted codes. The provisions of this act are set to take effect on September 1, 2025.