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      By: Bettencourt S.B. No. 2541     (Vasut)           A BILL TO BE ENTITLED   AN ACT   relating to the calculation of the unused increment rate of a taxing   unit.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 26.013(a)(3) and (4), Tax Code, are   amended to read as follows:                (3)  "Year 1" means the second [ third ] tax year   preceding the current tax year.                (4)  "Year 2" means the [ second ] tax year preceding the   current tax year.          SECTION 2.  Section 26.013(b), Tax Code, is amended to read   as follows:          (b)  In this chapter, "unused increment rate" means the   greater of:                (1)  zero; or                (2)  the rate expressed in dollars per $100 of taxable   value calculated according to the following formula:          UNUSED INCREMENT RATE = (YEAR 1 FOREGONE REVENUE AMOUNT +   YEAR 2 FOREGONE REVENUE AMOUNT [ + YEAR 3 FOREGONE REVENUE AMOUNT ]) /   CURRENT TOTAL VALUE          SECTION 3.  Section 26.013(a)(5), Tax Code, is repealed.          SECTION 4.  The changes in law made by this Act apply only to   the calculation of the unused increment rate, as defined by Section   26.013, Tax Code, as amended by this Act, for a tax year that begins   on or after January 1, 2027.  The calculation of the unused   increment rate for a tax year that begins before January 1, 2027, is   governed by the law in effect immediately before the effective date   of this Act, and the former law is continued in effect for that   purpose.          SECTION 5.  This Act takes effect January 1, 2026.