The bill amends the Recodified Tax Increment Financing Act of 2018, updating several sections to introduce new definitions and clarifications regarding key terms such as "advance," "assessed value," "authority," "business district," and "catalyst development project." A significant provision specifies that a "catalyst development project" must be situated in a municipality with a population exceeding 600,000 and necessitate a minimum capital investment of $300 million, with a cap of one such project per authority. The bill also outlines the conditions for financial obligations and advances made by municipalities on behalf of authorities, ensuring clarity in the definitions of "public facility" and "qualified refunding obligation" to support effective tax increment financing mechanisms.

Additionally, the bill clarifies the definition of "tax increment revenues," detailing what is included and excluded from these revenues, such as specific local taxes and ad valorem property taxes. It introduces new provisions regarding the establishment of transit operations finance zones, allowing for funding related to public facilities within designated Michigan development areas. The amendments aim to enhance economic growth and investment in municipalities while ensuring accountability and compliance with state regulations. Overall, the bill seeks to streamline the tax increment financing process and improve the operational efficiency of local development authorities.