The bill amends the Recodified Tax Increment Financing Act to modernize definitions and provisions related to tax increment financing, particularly focusing on economic development in alternative energy and technology sectors. Key insertions include definitions for "advance," which refers to funds municipalities provide to authorities with the expectation of repayment, and "alternative energy technology," which covers equipment for clean fuel generation and alternative energy vehicles. The bill clarifies "eligible property" to include high-technology activities and alternative energy businesses, replacing the term "high technology" with "high-technology." New definitions for "certified alternative energy park," "certified technology park," and "next Michigan development area" are also introduced to facilitate the implementation of tax increment financing plans.

Additionally, the bill modifies the application process for municipalities seeking designation as certified technology parks, requiring specific formats and information as determined by the Michigan Economic Development Corporation. It emphasizes the need for support from educational institutions or private research entities and outlines criteria for what constitutes a "qualified refunding obligation." The amendments aim to enhance economic growth by providing clearer guidelines for funding through tax increment financing, ensuring that designated areas can effectively support the commercialization of research and attract new business activity. Overall, the bill seeks to improve the framework for financing projects that promote local development initiatives in Michigan's economy.