HB 5553 Summary

• Amends the Tax Increment Finance Authority Act to define "qualified refunding obligation" as an obligation issued to refund another protected obligation or eligible obligation before December 31, 2012, subject to net present value savings requirements.

• Establishes a declining cap on tax increment revenues that authorities can receive for eligible obligations and management contracts, ranging from $3,000,000 for taxes levied between 2005-2010, declining to $0.00 for taxes levied after June 30, 2015.

• Allows a lease contract originally executed December 20, 1994 between a municipality and authority to be amended to extend cash rental payments up to 30 years through 2039, with the development plan extended to one year after final payment.

• Permits refunding obligations issued to refund other protected or eligible obligations to qualify for tax increment revenue funding, with limitations on the principal and interest outstanding at the time of issuance.

• Establishes specific requirements for determining tax increment revenues available for payment of eligible advances, obligations, and protected obligations under the tax increment financing program.