The bill amends the Recodified Tax Increment Financing Act (2018 PA 57) by updating definitions and clarifying terms related to tax increment financing. Key changes include a revised definition of "advance," which now requires evidence of intent to repay through an executed agreement, and a new definition for "authority" as a downtown development authority. The definition of "catalyst development project" is also modified to mandate a minimum capital investment of $300,000,000 and limits the designation of such projects to one per authority. Additionally, the bill clarifies that the "initial assessed value" is determined when the ordinance establishing the tax increment financing plan is approved and includes provisions for municipalities with populations under 1,000 and those under 35,000.

Moreover, the bill proposes amendments regarding the issuance and management of qualified refunding obligations, extending the development program's duration to one year after the final maturity date and allowing payments through 2025 at a legally permissible interest rate. It clarifies that these obligations are exempt from certain requirements of the revised municipal finance act and caps the revenues used for repayment at $750,000, with excess revenues allocated for future debt service as determined by the authority's board. New definitions for terms such as "qualified township," "specific local tax," and "tax increment revenues" are introduced, along with adjustments to eligibility language and assessed value calculations, ensuring compliance with existing laws while providing municipalities and authorities with greater financial management flexibility.

Statutes affected:
Senate Introduced Bill: 125.4201