Committee amends H.397 to extend TIF incurrence window to 2028

Anderson Legislative Council members amended H.397 on May 1, 2025, to add language from H.419 that extends the tax-increment financing (TIF) incurrence/retention deadline in subsection a from March 31, 2026, to 2028 and moved the bill favorably out of committee.

The amendment was presented as a committee amendment that “adds a new section 22a, which contains the language from H.419,” according to a committee staff member. The committee then voted to move the bill as amended.

The committee heard a fiscal office clarification that the amendment changes the timeline for when the TIF district could incur debt and that the fiscal impact cannot be precisely calculated at this time. A fiscal office staff member said the office was “unable to put an exact number because it depends on what barrier is going to incur in their incursion period,” and noted the change affects how long increments would be retained and when municipal taxes would be the only source available to pay debt if obligations extend beyond the retention period.

Committee members discussed whether the amendment related to a housing project and whether details about the debt structure were complete. One committee member said the matter was “good conversation for next year” and indicated concerns about outstanding homework from bill proponents.

The amendment was approved in committee and the bill as amended was moved favorably to the next stage of the legislative process.

The committee did not adopt a numeric fiscal estimate during the meeting and flagged the item for further review in subsequent sessions.

Notes: Remarks about the amendment occurred during the committee’s consideration of H.397 and related materials supplied from the GovOps report and H.419; the committee recorded a favorable movement on the amendment and on the bill as amended.