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Tax increment financing is a tool that lets cities, counties, community reinvestment agencies, and other public entities redirect growth in tax revenue from a defined area to pay for development projects in that same area. Starting July 1, 2026, this bill would require any public entity seeking to use tax increment financing to first hold a public "application authorization meeting," then submit an application to the Governor's Office of Economic Opportunity describing the project, showing why it couldn't move forward without the tax increment, and demonstrating that the benefits to nearby residents and taxpayers are proportionate to the benefits gained by others, using a detailed financial analysis comparing revenue diverted versus revenue that would otherwise go to other taxing entities. The office would have 30 days to approve or deny the application, and could only deny it if the application is unclear, vague, or contains demonstrably inaccurate information; once approved, the public entity could proceed to trigger and collect the tax increment, subject to notification requirements to affected taxing entities and the State Tax Commission. If a public entity collects more revenue than expected or exceeds the approved cap, it would be required to use the excess to pay down debt faster and return any amount over the cap to the appropriate taxing entities, and all approved application information would be posted publicly on the state's public finance website.