HB2026 Summary

• Adds "certified industrial zones" as a new category of enhanced enterprise zones, defined as at least 100 acres approved as certified sites with blight findings and poverty rates of 20% or higher or median income below 80% of statewide/metropolitan median income.

• Includes data processing, hosting, and web services (NAICS 518210 and 519130) as mandatory eligible business enterprises in certified industrial zones, and allows private parties improving certified industrial zones to qualify for tax benefits.

• Streamlines the designation process for certified industrial zones by allowing them to use existing public hearing requirements under blight redevelopment laws rather than requiring separate enhanced enterprise zone hearings, with deemed approval upon notice to the department.

• Creates a new tax credit structure (Section 135.969) for businesses in certified industrial zones offering 10% credit on gross wages of new employees and 5% credit on new business facility investment, with $10 million annually reserved from the $24 million total authorization.

• Increases property tax exemption eligibility to include improvements made by private parties in certified industrial zones and raises investment thresholds for credits in certified industrial zones to $1 million or $10 million aggregate expenditure.