MD HB506

Establishes the Transformational Project Financing Program within the Maryland Economic Development Corporation to allow political subdivisions to apply for "State-supported development district" designation for large-scale projects that would increase population, employment, or commercial activity

Pledges net-new State revenues (income tax, sales tax) generated within approved districts to support bond financing for up to 30 years after project completion, with the Comptroller certifying and transferring funds annually to a trustee-held project trust account

Requires "displacement adjustments" to reduce credited State revenues by set percentages: 60% for retail/restaurants, 25% for office space, 10% for industrial/manufacturing, and 15% for tourism uses—though no adjustment applies to affordable housing or projects in designated priority areas

Development districts must be formed before July 1, 2031, demonstrate they are not economically viable without State participation, and show a positive net fiscal impact to the State after displacement adjustments

Creates the Transformational Project Financing Fund as a special nonlapsing fund administered by the Corporation, with bond proceeds usable for private building construction/rehabilitation if necessary for project viability