An Act To Clarify Municipal Affordable Housing Tax Increment Financing

This bill clarifies Maine's rules for municipal tax increment financing (TIF) districts that fund affordable housing. It sets a maximum 30-year duration for these districts (from when housing is occupied) or 35 years (from district approval), whichever comes first. The bill expands eligible project costs to include public safety improvements like fire station construction, equipment, or personnel costs directly tied to the district. Additionally, it requires leftover tax revenues in the TIF fund to be used for debt payments or project costs for up to three years after the district ends, after which they must return to the municipality's general fund with a tax adjustment.