TX HB2878

Authorizes municipalities (zones created after January 1, 2005) and counties (zones created after January 1, 2022) to use tax increment financing (TIF) funds for educational facilities in qualifying reinvestment zones larger than 500 acres

Qualifying zones must contain a tract larger than 20 acres that was donated to a school district for educational facility construction, with an existing agreement requiring the school district to pay tax increment into the zone's fund

Allows TIF zone boards to enter new or amended agreements with school districts to dedicate tax increment fund revenue for acquiring, constructing, or reconstructing educational facilities located inside or outside the zone

Permits municipalities, counties, or zone boards to contract with school districts to finance construction of educational facilities, funded by the tax increment generated by the school district

School districts are entitled to state aid equal to the amount they must pay into the tax increment fund under these new provisions, effective beginning with the 2025-2026 school year