AI-generated summary. We recommend consulting the bill text for important decisions.

Starting July 1, 2026, this bill requires any local government entity — such as a city, county, community reinvestment agency, or special district — that wants to use tax increment financing to first hold a public meeting, then submit a formal application to the Governor's Office of Economic Opportunity for approval before collecting any tax increment. Tax increment financing is a tool that diverts the growth in tax revenue from a defined area to fund development projects in that same area. The application must include a description of the project, a justification showing the project couldn't move forward without the tax increment, and an analysis demonstrating that the public benefit outweighs the cost of diverting that revenue. If a public entity collects more tax increment than anticipated, the bill requires the excess to be used to pay off debt faster rather than for new spending, and all approved application information must be posted publicly online. Local governments pursuing economic development projects will face a new state-level review process before they can access tax increment financing, adding a transparency and accountability layer that could slow project timelines but also give the public more visibility into how and why tax dollars are being redirected.