HB 359 — An Act amending the act of July 11, 1990 (P.L.465, No.113), known as the Tax Increment Financing Act, further providing for definitions, for powers of authorities, for creation of tax increment districts and approval of project plans and for financing of project costs.

PRIOR PRINTER'S NO.

313 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1582359 THE2025 GENERALINTRODUCED ASSEMBLYBY OFPOWELL, PENNSYLVANIASANCHEZ, HOUSEGIRAL, BILLHILL-EVANS, SessionBRENNAN, JANUARY 27, 2025 FLEMING, FRANKEL, DEASY AND GREEN, REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT, JANUARY 27, 2025 AN ACT Amending the act of No.July 11, 1990 (P.L.465, No.113), entitled "An act providing for the creation of tax increment districts;

359 2025 INTRODUCED BY POWELL, SANCHEZ, GIRAL, HILL-EVANS, BRENNAN, CIRESI, FREEMAN, FLEMING, FRANKEL, DEASY AND GREEN, JANUARY 27, 2025 AS REPORTED FROM COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 5, 2025 AN ACT Amending the act of July 11, 1990 (P.L.465, No.113), entitled "An act providing for theadditional creationpowers ofand taxduties incrementto be exercised by redevelopment authorities and by industrial and commercial development authorities;

allocatingfor the paymentfinancing of positiveproject taxcosts; increments;

and providing for thetheing issuance of tax increment bonds and notes," further providing for definitions, for creation of tax increment districts and approval of project plans and for financing of project costs;costs.

and providing for the issuance of tax increment bonds and notes," further providing for definitions, for powers of authorities, for creation of tax increment districts and approval of project plans and for financing of project costs.

(1) Capital costs, including the actual costs of the construction of public works or improvements or residential, commercial or industrial development or revitalization, new 20250HB0359PN1582 - 2 - buildings, structures and fixtures;

the demolition, 20250HB0359PN0313 - 2 - alteration, remodeling, repair or reconstruction of existing buildings, structures and fixtures;

20250HB0359PN1582 - 3 - (7) Organizational costs, including the costs of 20250HB0359PN0313 - 3 - conducting environmental impact and other studies and the costs of informing the public with respect to the creation of tax increment districts and the implementation of project plans.

(8) Costs which are found to be necessary or convenient to the creation of tax increment districts or the implementation of project plans, OR FOR THE FUNDING OF A <-- REDEVELOPMENT FUND AS PROVIDED UNDER SECTION 4(6) or for the reimbursement of prior expenditures made for any of the costs under this definition.

* * * SECTIONSection 2.

SECTIONSections 45(a)(4)(i) OFand THE(6)(i) ACTand IS(ii) AMENDEDand BY9(d) ADDINGof Athe <--act PARAGRAPHare TOamended READ:to read:

SECTION 4.

POWERS OF AUTHORITIES.

IN ADDITION TO ALL OTHER POWERS CONFERRED BY LAW, AN AUTHORITY MAY EXERCISE ANY POWERS NECESSARY AND CONVENIENT TO CARRY OUT THE PURPOSES OF THIS ACT, INCLUDING THE POWER TO:

* * * (6) ENTER INTO AGREEMENTS WITH MUNICIPALITIES AND SCHOOL DISTRICTS FOR THE CREATION OF A REDEVELOPMENT FUND TO BE USED TO FURTHER THE PURPOSES OF THE AUTHORITY, TO BE FUNDED THROUGH THE ALLOCATION OF TAX INCREMENTS BOTH DURING THE EXISTENCE OF A TAX INCREMENT DISTRICT AND AFTER THE DISTRICT HAS TERMINATED.

Section 2 3.

Sections 5(a)(4)(i) and (6)(i) and (ii) and <-- 9(d) of the act are amended to read:

(a) General rule.--A tax increment district shall be created 20250HB0359PN1582 - 4 - in the following manner:

* * * (6) In order to create a district and adopt a project 20250HB0359PN0313 - 4 - plan, the governing body of the municipality which will create the tax increment district shall adopt, not earlier than three weeks after the public hearing described in paragraph (5) has been held, a resolution or ordinance which:

A tax increment district may exist for a period not to exceed [20] 25 years, unless an amendment is made to the project 20250HB0359PN1582 - 5 - plan under paragraph (8).

* * * Section 33. 4.

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