Councils are being asked to apply for powers to retain 75% of the growth in income raised through business rates.
The Government said the new round of pilots will understand how local authorities can smoothly transition into the proposed system in 2020.
Communities secretary, James Brokenshire said: 'I want to encourage councils to work together, with the aim of sharing their business rates income, so they can make better decisions that benefit their wider areas.
'Continuing the pilot programme for the second time allows us to look at how the system will work from 2020.'
The Government said the current 50% business rates retention scheme will generate an extra £2.4bn for local authorities in 2018-19.
