When the Tennessee General Assembly approved sweeping changes to the tax increment financing (TIF) statute for housing and development authorities throughout the state, significant flexibility was added for the use and scope of TIF funds. The legislation particularly allows, for the first time, for TIF funds to be utilized for the cost of incorporating green design features into projects.
The legislation was drafted by attorneys from Waller Lansden's Government Affairs practice and was sponsored by Sen. Jack Johnson, R- Franklin, and Rep. David Shepard, D-Dickson. The bill received immense support in both the Tennessee House and Senate and was signed into law by Governor Bredesen on June 23, 2009.
The new law significantly expands the authority of the local governments by allowing the utilization of the TIF funds for use in sustainable green building practices and sustainable infrastructure. The revisions to the TIF statute also provide significant additional flexibility to local governments.
Under the new law, TIF can now be used for:
- Installation, construction or reconstruction of public or private parking structures to encourage and support more "in-fill type" development
- Payment of Leadership in Energy and Environmental Design (LEED) certification costs and costs related to certification such as commissioning, energy modeling, design and other greening costs
- Payment of the cost of various green building aspects of redevelopment, including, green roofs and other sustainability and eco-friendly improvements
- Installation, construction or reconstruction of public infrastructure, including the cost of incorporation of renewable power facilities, that incorporate alternate principles of sustainability
- Payment of all other costs "necessary" to further the overall local government approved goals of the redevelopment plan
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
