This bill aims to enhance economic development in border cities by increasing the allocation for border city enterprise zones and modifying existing tax reduction authorities. Specifically, it raises the annual allocation from $750,000 to $1,500,000 for tax reductions, which can be utilized by municipalities to retain or attract businesses within these zones. The bill also introduces new provisions for tax reductions, including an increase in the income tax credit for employers from $3,000 to $5,000 per employee, and allows for reimbursements of land acquisition costs necessary for business expansion.

Additionally, the bill removes certain restrictions on the types of facilities eligible for tax reductions, broadening the scope of businesses that can benefit from these incentives. It allows border cities to designate any part of the city as development zones, rather than being limited to specific areas of 100 acres or less. The effective dates for these changes vary, with some provisions taking effect immediately upon final enactment and others set for future dates, such as July 1, 2025, and for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 469.169, 469.171, 469.1731