Texas SB2261 restricts disbursement from tax increment funds for certain project costs in tax increment financing reinvestment zones.

Texas SB2261 amends the Tax Code to limit the disbursement of money from tax increment funds for specific project costs within tax increment financing reinvestment zones. Specifically, it prohibits disbursing more than 25 percent of the total deposits into the fund for a calendar year to pay these costs. This change takes effect on January 1, 2026.

Texas SB2261 restricts disbursement from tax increment funds for certain project costs in tax increment financing reinvestment zones.

Texas SB2261 amends the Tax Code to limit the disbursement of money from tax increment funds for specific project costs within tax increment financing reinvestment zones. Specifically, it prohibits disbursing more than 25 percent of the total deposits into the fund for a calendar year to pay these costs. This change takes effect on January 1, 2026.