Bill H.378 establishes a housing infrastructure tax increment financing (TIF) program in Vermont, to be administered by the Vermont Economic Progress Council. This program enables municipalities to use increments from statewide education property taxes and municipal property taxes to fund infrastructure projects that promote housing development in designated areas. The bill introduces a new subchapter titled "Housing Infrastructure Tax Increment Financing," which defines key terms such as "brownfield," "developer," and "housing infrastructure project." It outlines the process for municipalities to create housing infrastructure projects, including the development of a housing development plan, public hearings, and legislative adoption.

The bill also sets forth requirements for public infrastructure agreements, the application process for TIF approval, and conditions for municipalities to incur debt for housing projects. It specifies that tax increments must be used solely for related costs and mandates public notice and voter approval for incurring debt. Additionally, it allows municipalities to retain up to 80% of education and municipal property tax increments for up to 20 years, starting from the certification of substantial completion of the housing development. The Vermont Economic Progress Council's responsibilities are expanded to include oversight of the TIF program, and municipalities are required to implement a reporting system and conduct annual audits for compliance. The act is scheduled to take effect on July 1, 2025.

Statutes affected:
As Introduced: 32-3325