IL HB4712

Limits surplus fund distributions from Tax Increment Financing (TIF) special tax allocation funds to no more than 5% of total surplus funds, reduced from the current requirement to distribute all surplus funds

Changes the frequency of surplus fund distributions from annually to no more than once every 10 years

Prohibits any surplus fund distributions for TIF redevelopment project areas extended beyond their 23rd calendar year until the project area is fully terminated

Amends Sections 11-74.4-7 and 11-74.4-8 of the Illinois Municipal Code's Tax Increment Allocation Redevelopment Act

Takes effect immediately upon becoming law