HB3565 Summary: Mega Projects Tax Incentives

• Creates "mega project" classification for large-scale facilities requiring minimum $500 million investment over a 7-10 year period, with Department of Revenue certification eligibility.

• Establishes assessment freeze limiting property tax valuation to base year amount during incentive period (up to 23 years, extendable to 40 years), eliminating value added by project improvements.

• Requires special payments to local municipalities in lieu of increased property taxes, distributed proportionally to affected taxing districts based on their base year property tax shares.

• Exempts qualified tangible personal property used in mega project construction/operation from use tax, service use tax, service occupation tax, and retailers' occupation tax.

• Mandates project requirements including project labor agreements with building trades councils, 20% contracting goal for minority-owned businesses, and minimum 20-year operation at project location.