The fast-food chain had already said in January that it was testing a "$1 Cravings" menu that would replace its "Why Pay More" menu, which has tiered pricing.
In a call with reporters Thursday, executives at the chain said they're confident they've hit on the right mix of products for a national rollout this year. But they declined to specify a date.
The latest iteration of the $1 Cravings menu has 12 items, including new offerings such as Shredded Chicken Mini Quesadillas and a Beefy Nacho Loaded Griller. The menu is being tested in Kansas City, Mo., and Sacramento, Calif., the company said.
Fast-food chains have been touting their cheap eats to attract customers at a time when the industry is barely growing and competition is intensifying. McDonald's is emphasizing its Dollar Menu, and Burger King is highlighting more deals.
Wendy's, meanwhile, has taken a slightly different approach. The chain last year revamped its 99-cent menu in favor of tiered pricing that gives it more wiggle room.
Taco Bell is owned by Yum Brands Inc., which also owns KFC and Pizza Hut.