AL HB142

Increases the cap on equalized taxable property that Class 2 municipalities may include in tax increment districts from 10% to 50% of total municipal property value, matching the existing allowance for Class 3 municipalities

Amends Section 11-99-4 of the Code of Alabama 1975 governing tax increment financing procedures for public entities

Tax increment districts in blighted or economically distressed areas may last up to 30 years; districts in enhanced use lease areas or Major 21st Century Manufacturing Zones may last up to 35 years

Effective date: October 1, 2026