HB629 Summary

• Authorizes Class 3 municipalities to designate large contiguous tracts of underutilized real property (at least 500 acres) as Major 21st Century Manufacturing Zones for automotive, aviation, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical industry manufacturing facilities.

• Allows municipalities to use tax increment financing as a funding mechanism by capturing tax increments generated within the zone to pay for capital improvements, public infrastructure, and construction of buildings and structures to support manufacturing activities.

• Extends tax increment district duration from 30 years to 35 years for Major 21st Century Manufacturing Zones and permits project expenditures to be made up to 10 years after district creation (versus the standard 5-year limit), with extension to 15 years for enhanced use lease areas.

• Provides that projects within the zone must make tax increment payments to repay tax incentives provided, and allows funding through multiple methods including public entity general funds, bonds, notes, and tax increment obligations.

• Applies retroactively to tax increment districts created on or after April 1, 2012, where at least 50 percent of the district area is designated as a Major 21st Century Manufacturing Zone.