HB 3291 designates projects developed by Type A economic development corporations as serving a public purpose for taxation purposes. The bill clarifies that these projects are owned, used, and held on behalf of the municipality that created the Type A corporation. It exempts these projects from ad valorem taxation under Section 11.11 of the Tax Code for the period they are owned by the corporation. The bill also ensures that leasehold or other possessory interests granted by a Type A corporation are not subject to taxation under certain provisions of the Tax Code. These changes apply to ad valorem taxes imposed for tax years beginning on or after September 1, 2025​.