HB 1865 amends the rules governing the allocation of low-income housing tax credits by increasing the maximum amount of credits that can be allocated to an individual development from $2 million to $3 million in a single application round. It also limits the total allocation to an applicant to $6 million per round. These changes will apply to applications submitted during the 2026 allocation cycle or subsequent cycles based on qualified allocation plans adopted by the Texas Department of Housing and Community Affairs. Applications submitted under earlier plans remain subject to prior laws.