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Committee advances bill to create transit investment authority, housing tax credit
Summary
The Senate Appropriations Committee approved House Bill 10-65 (as amended) on a 4–3 vote, directing a $191,000 appropriation to OEDIT to set up a transit investment authority and authorizing a transit-and-housing investment-zone tax credit capped at $75 million per year to spur development near transit hubs.
The Senate Committee on Appropriations on Monday advanced House Bill 10-65 as amended, voting 4–3 to approve a measure that would create a transit investment authority and a transit-and-housing investment-zone tax credit.
The committee adopted amendment J002 before approving the bill. A bill sponsor told the committee the measure includes a $191,000 appropriation to the Office of Economic Development and International Trade (OEDIT) to stand up program administration and that the authority would use a tax-increment financing (TIF) mechanism tied to the 2.9% state sales tax collected within two miles of a designated transit center. The sponsor said the bill also establishes a transit-and-housing tax credit modeled after the state affordable housing tax credit and capped at $75 million per year to encourage housing development near transit.
Why it matters: Supporters said the package would help communities invest in infrastructure and housing that make public transit more viable, and that both urban and rural local governments backed the approach. Committee members sought details on income targeting and fiscal impacts: one member asked whether the credit is limited to low-income housing and how AMI (area median income) levels would be set. The sponsor responded that the bill does not set a single statewide AMI and that eligibility would be modeled on existing statutory AMI frameworks so levels can vary by region.
Fiscal and program details: The sponsor said the appropriation funds OEDIT’s administration of both the transit investment authority and the housing tax credit. The TIF would capture 2.9% state sales tax revenue generated inside the designated 2-mile zone for up to 30 years to finance infrastructure investments around transit centers. The tax-credit program’s annual cap is $75 million; the sponsor said the credit was designed to be flexible for urban, suburban and rural contexts.
Committee action: After questions about whether local sales tax would be used, the sponsor clarified that this TIF uses state sales tax revenue and that localities could optionally contribute but are not required. The committee adopted J002 4–3 and then approved the bill as amended 4–3.
What’s next: The bill advances out of the committee to the next step in the legislative process.
