HB5545 Summary

• Creates the "Megaproject Assessment Freeze and Payment Law" establishing a property tax assessment freeze for large capital projects meeting minimum investment of $100 million and job creation of at least 100 new full-time employees.

• Requires megaproject companies to enter into incentive agreements with local municipalities and taxing districts, paying annual special payments in addition to regular property taxes, with special payments to school districts increasing annually by the lesser of 5% or the Consumer Price Index.

• Freezes property assessment at base year valuation during the incentive period (7-10 years, potentially extendable to 40 years), eliminating tax on value added by the project while limiting total valuation to pre-project levels.

• Exempts qualified tangible personal property used in megaproject construction from use tax, service use tax, service occupation tax, and retailers' occupation tax; requires project labor agreements and establishes goal of awarding 20% of project contracts to minority-owned businesses.

• Prohibits megaproject assessment freezes for sports stadiums unless approved by General Assembly joint resolution and for projects in Tax Increment Financing districts; effective June 1, 2024.