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 refined definition of "advance," which now requires evidence of intent to repay through an executed agreement, provisions in an approved tax increment financing plan, or a resolution from the authority or municipality. The term "catalyst development project" is also specified to require a minimum capital investment of $300 million and limits the designation of such projects to one per authority. Additionally, the definition of "initial assessed value" is modified to clarify its determination, particularly for municipalities with populations under 1,000 that have established authorities with expired plans.

The bill further proposes amendments to laws regarding tax increment financing and qualified refunding obligations, extending the duration of development programs related to these obligations to one year after their final maturity date, allowing for repayment through 2025 at a legally permissible interest rate. It defines qualified refunding obligations with specific revenue limits, including a cap of $750,000 on revenues used for repayment, and exempts them from several requirements of the revised municipal finance act. New definitions are introduced for terms such as "qualified township," "specific local tax," and "tax increment revenues," with clarifications on the calculation of assessed values and the inclusion of various taxes. The bill aims to enhance financial mechanisms for municipalities while ensuring compliance with updated legal standards.

Statutes affected:
House Introduced Bill: 125.4201