Relating to limitations applicable to certain agreements providing for a rebate of municipal sales and use taxes or a grant or loan based on those taxes.

HB 5169 limits tax rebates and grants municipalities can offer to businesses relocating between Texas cities. It prevents municipalities from providing more generous incentives (like sales tax rebates or grants) than what a business previously received from its former city or cities. For businesses moving from multiple cities, the new incentive is capped at a weighted average based on taxes paid in those previous locations. The law takes effect September 1, 2025, applying to new agreements or renewals after that date.