Bill > SB455

This bill establishes the Transformational Project Financing Program within the Maryland Economic Development Corporation (MEDC) to encourage significant development projects. The program allows local governments to designate certain areas as "State-supported development districts" if they have a "transformational plan" – a large-scale improvement plan likely to boost population, employment, or commercial activity, and which wouldn't be economically viable without state help. To qualify, these districts must have local property taxes already pledged for development and meet specific criteria for economic impact, considering potential "displacement adjustments" which account for state revenue that might have been generated elsewhere in the state. The MEDC will administer the program, approve applications, and publish a summary of approved districts annually. The program will be funded by "net-new State revenues," meaning new income and sales taxes generated by the development district, which will be deposited into a dedicated Transformational Project Financing Fund and then disbursed to support the project's financing. This funding is specifically for the life of bonds issued for the project, not exceeding 30 years after completion, and is limited to net-new revenue after displacement adjustments are applied, with certain areas like affordable housing and "priority areas" exempt from these adjustments.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0455?ys=2026RS