TX HB263

Reduces the allocation percentage for oil and gas production taxes from 20% to 15% and for horizontal well completions from 45% to 40% in the transportation infrastructure fund grant distribution formula

Decreases the allocation for vertical well completions from 15% to 10% of the fund

Creates a new 10% allocation category for counties adjacent to counties with regularly producing horizontal wells, distributed equally among qualifying adjacent counties that apply for grants

Establishes a new 5% allocation category for counties adjacent to counties with regularly producing vertical wells, also distributed equally among qualifying adjacent counties that apply for grants

Effective date is September 1, 2025