The bill amends the Recodified Tax Increment Financing Act of 2018, focusing on clarifying definitions and processes related to tax increment financing. It introduces a new definition for "catalyst development project," which must be located in municipalities with populations over 600,000 and require a minimum capital investment of $300 million. The bill also outlines conditions for municipalities to make advances on behalf of authorities, emphasizing the need for evidence of intent to repay. Additionally, it refines the language surrounding tax increment financing plans, obligations, and the roles of municipalities and authorities, including criteria for determining "initial assessed value" and guidelines for calculating captured assessed value.

Moreover, the bill establishes new definitions for "qualified township" and "qualified refunding obligations," while clarifying the types of taxes included in tax increment revenues. It specifies that tax increment revenues can include certain ad valorem property taxes and local taxes, particularly in relation to development areas. The bill also introduces provisions for creating transit operations finance zones and outlines the process for funding public facilities related to eligible properties. Overall, these amendments aim to enhance the effectiveness and clarity of tax increment financing in Michigan, ensuring compliance with updated definitions and requirements while promoting economic growth and investment in municipalities.

Statutes affected:
Senate Introduced Bill: 125.4201
As Passed by the Senate: 125.4201