SPRINGFIELD – State Senator Rachel Ventura introduced a new measure to modernize Tax Increment Financing (TIF) programs by strengthening transparency, protecting taxpayers and ensuring economic development incentives deliver meaningful benefits to local communities.

“TIF districts can be a powerful tool for promoting economic development, revitalizing underinvested communities and promoting growth and development of our cities and towns,” said Ventura (D-Joliet). “This legislation ensures TIFs are used responsibly, prevents abuse of incentive programs and helps direct resources where they are needed most.”

TIF districts are used by municipal governments to stimulate economic development in targeted areas — those categorized as “blighted.” Ventura’s initiative would reform several key components of TIFs. The measure would tighten the criteria used to designate areas as blighted, preserves important definitions such as dilapidation and clarifies that farmland cannot be classified as blighted for TIF eligibility.

The proposal limits the duration of new TIF districts to 10 years, with the option for a single five-year extension, helping ensure redevelopment tools remain targeted and temporary. School districts would be allowed to opt out of a TIF district, and 10% of annual TIF funds would be set aside for local chambers of commerce to distribute small business grants within the district.

To prevent municipalities from shifting businesses from one area to another simply to capture tax incentives, the bill strengthens anti-poaching protections. The legislation expands restrictions on overlapping economic development zones and applies them across multiple incentive programs, including TIFs, Enterprise Zones, STAR bonds and similar tax incentive structures.

“We have seen these economic incentives come at the expense of our schools, small businesses and homeowners,” said Ventura. “This legislation strikes a balance between supporting economic development and protecting taxpayers, schools and local governments.”

Senate Bill 3829 currently awaits committee assignment.