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HB 3693

Relating to firearms.

2025 Regular Session Introduced by Werner Reschke

HB 3693 shortens the maximum life of new TIF districts (to 15 years after adoption for ordinances after July 1, 2025), speeding local tax revenue returns.

In committee upon adjournment.
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Bill Summary · HB 3693

HB 3693 — Summary (2025 Illinois General Assembly)

Note: The bill title in the header reads "Relating to firearms," but the text of the introduced bill amends the Tax Increment Allocation Redevelopment Act (TIF provisions) in the Illinois Municipal Code (65 ILCS 5/11‑74.4‑3.5). This summary describes the actual statutory changes in the bill text.

Purpose / Intent

HB 3693 changes statutory limits on the estimated completion date of redevelopment projects and the retirement date for obligations issued to finance redevelopment project costs under Illinois' Tax Increment Financing (TIF) law. The principal policy effect is to shorten the maximum duration for new TIF districts created on or after a specified date so that tax increment flows (ad valorem tax distributions) return to local taxing districts sooner.

Key provisions

  • Amends 65 ILCS 5/11‑74.4‑3.5 (Completion dates for redevelopment projects).
  • For any ordinance approving a redevelopment project area adopted on or after July 1, 2025:
    • The estimated date of completion of the redevelopment project and the estimated retirement date for obligations issued to finance project costs may not be later than December 31 of the year in which the payment to the municipal treasurer is made with respect to ad valorem taxes levied in the 15th calendar year after the year the ordinance was adopted.
    • (Current statutory default for many TIFs is the 23rd calendar year; HB 3693 would change that to the 15th year for ordinances adopted on/after July 1, 2025.)
  • Preserves or establishes longer maximum durations in specific circumstances:
    • Redevelopment project areas located within a “transit facility improvement area” remain eligible for a December 31 limit tied to the year in which taxes levied in the 35th calendar year would be paid (i.e., up to 35 years).
    • A number of enumerated special cases and legacy TIFs maintain differing year limits (examples in the bill text include specific adoption dates or municipalities such as the Village of Downs, Village of Wheeling, City of Lawrenceville, Village of Tremont, etc., with year-limits varying from the 28th to 33rd years). The bill retains these exceptions as written.
  • Transitional language for redevelopment project areas that straddle prior statutes (e.g., areas established before Aug 12, 2016) and procedures for dissolving and re‑establishing special tax allocation funds are included.
  • Effective date: Immediate upon enactment (the bill text states “Effective immediately”).

Who is affected

  • Municipalities using tax increment financing and their finance offices — they must plan TIF project schedules, bond issuances, and financing to fit the shorter maximum timeline for ordinances adopted on/after July 1, 2025.
  • Local taxing districts (school districts, counties, park districts, library districts, etc.) — would generally receive incremental tax revenues back sooner for new TIFs, increasing their revenue availability relative to current practice.
  • Developers and investors — availability and structure of TIF-backed financing (including length of revenue streams for debt service) may change, potentially limiting financing for very long-term projects.
  • Bondholders / credit analysts — may need to reassess amortization schedules and security based on revised project/obligation retirement timelines.

Potential impacts

  • Shortening the statutory TIF life from the 23rd to the 15th year (for new TIFs after July 1, 2025) could:
    • Accelerate the return of incremental tax revenues to underlying taxing districts.
    • Reduce the amount or duration of tax increment available to repay redevelopment bonds, possibly limiting the size or term of financings.
    • Require municipalities to front-load projects or seek alternative financing for longer-term redevelopment.
  • Exceptions (e.g., transit facility improvement areas up to 35 years) maintain flexibility for large transit-related projects.

Legislative status & timeline

  • Introduced/First read: Feb 18, 2025 (filed by Rep. Maura Hirschauer)
  • Filed with clerk: Feb 7, 2025; additional procedural entries Feb–Mar 2025
  • Referred to committees: Rules; Revenue & Finance; Judiciary; Ways & Means (various dates)
  • Read first time: Mar 25, 2025
  • Current status (as of 2025‑06‑28): In committee upon adjournment

Statutory citation

  • Amends: 65 ILCS 5/11‑74.4‑3.5 (Illinois Municipal Code — Tax Increment Allocation Redevelopment Act)

If you want, I can:
- Produce a short explainer for municipal finance officers outlining immediate actions if this bill becomes law;
- Extract the full list of preserved exceptions and legacy TIFs from the bill text for a municipality-by-municipality reference.

Compiled from official sources — confirm details with the bill’s official record.

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