HB164 Summary

• Authorizes municipalities to designate large contiguous tracts of underutilized real property (minimum 250 acres) as Major 21st Century Manufacturing Zones for automotive, aviation, medical, pharmaceutical, semiconductor, computer, electronics, energy conservation, cyber technology, and biomedical manufacturing facilities.

• Requires designated zones to anticipate at least $100,000,000 in capital expenditure for establishment, expansion, construction, and development of manufacturing facilities.

• Allows municipalities to finance zone development through tax increment financing, with tax increment districts permitted to operate for up to 35 years (compared to 30 years for blighted areas).

• Enables tax increment obligations to be paid from positive tax increments and allows public entities to make project cost payments directly or grant funds to third-party recipients within the zone.

• Applies retroactively to tax increment districts created on or after April 1, 2013, where at least 50 percent of the district area is designated as a Major 21st Century Manufacturing Zone.