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, and municipalities with populations of at least two million to qualify. It also introduces a new category for municipalities described by Section 334.0082(a)(2) of the Local Government Code.

Furthermore, 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 are authorized to collect a municipal hotel occupancy tax and are 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 certain municipalities. The act is set to take effect on September 1, 2025.