On Wednesday the Senate passed a five-bill package (SB 111, SB 112, SB 113, SB 114 & SB 115) which would allow “transformational” redevelopment projects to capture state tax when a gap is identified between the financial viability of a development project and the cost of building that development.

The legislation requires a certain level of private investment from each project based on the population size of the community the project will be located in. The League worked closely with the bill sponsor and stakeholders to have the investment threshold lowered for the lowest population group so more communities would have the opportunity for a transformational project if the legislation is enacted.

In addition to the private investment, a project must show a net economic benefit and get approval from the local unit of government, where the project will be located, before it would be eligible for state tax capture. Only one project could be approved in a community per year, and the total tax capture the state authorizes cannot exceed $40 million per year.

The legislation now moves to the House and has been referred to the Committee on Tax Policy.

Jennifer Rigterink is a legislative associate for the League handling economic development, land use and municipal services issues.  She can be reached at [email protected] or 517-908-0305.