S.B. No. 2134 amends the Tax Code to expand the authority of certain municipalities to utilize tax revenue for qualified projects. Specifically, it modifies Section 351.1015(b) to include additional criteria for municipalities eligible for these projects. The bill now allows municipalities with populations of at least 700,000 but less than 950,000, those containing over 70% of a county's population with 1.5 million or more, municipalities with populations of at least two million, and those described by specific sections of the Local Government Code to qualify. The previous language that limited eligibility has been deleted, and new categories have been inserted to broaden the scope.

Additionally, the bill redesignates and amends existing subsections related to local government corporations, allowing them to act as municipalities for the purposes of this section if they meet certain criteria, including being authorized to collect a municipal hotel occupancy tax and being located in a county with a population of 3.3 million or more. The definition of "qualified project" is also expanded to include venues and related infrastructure for specific municipalities. The bill is set to take effect on September 1, 2025.