HB3720 Summary

• Allows surplus tax increment financing (TIF) funds in municipalities with populations greater than 1,000,000 to be used entirely for costs of special education, social services, and other public school district expenses.

• Requires municipalities with populations less than 1,000,000 to distribute surplus TIF funds to taxing districts and the Illinois Department of Revenue in proportion to tax incremental revenue received.

• Clarifies that incremental tax revenues from improved properties must meet at least 5 blighting factors, while vacant land areas require 2 or more factors to qualify for TIF designation.

• Establishes procedures for the Department of Revenue to review redevelopment project areas and issue Certificates of Eligibility or Notices of Deficiency regarding State Sales Tax Boundary qualification.

• Prohibits property receiving enterprise zone tax abatements from being included in State Sales Tax Boundaries used for TIF revenue calculations.