Designation of Federal value capture tax increment financing districts

(a) In general From among the eligible areas nominated for designation under this section, the Secretary of Transportation shall designate Federal tax increment financing districts to help State and local government finance the cost for certain improvements and investment in public transportation, affordable housing, and other community development activities in an eligible area. (b) Number of designations The Secretary of Transportation may annually designate nominated areas as a Federal value capture tax increment financing district under this section. (c) Period for which designation is in effect (1) In general Any designation under this section shall remain in effect during the period beginning on the date of the designation and ending on the earliest of— (A) December 31, 2030; (B) the termination date designated by the State and local governments as provided for in a nomination; or (C) the date on which the Secretary revokes the designation. (2) Revocation of designation If appropriate, the Secretary may revoke the designation under this section of an area if such Secretary determines that the local government or the State in which it is located— (A) has modified the boundaries of the area; or (B) is not complying substantially with, or fails to make progress in achieving the benchmarks set forth in section 4. (d) Limitations on designations No area may be designated under this section unless— (1) the area is nominated by 1 or more local governments and the State or States in which it is located for designation under this section; (2) such State or States and the local governments have the authority— (A) to nominate the area for designation under this section; and (B) meet the Federal requirements described in this title; (3) such State or States and the local governments meet the Federal value capture policy standards as described in section 4; (4) the Secretary determines that any information furnished is reasonably accurate; and (5) such State or States and local governments certify that no portion of the area nominated is already included in a Federal tax increment financing district, an infrastructure value capture zone, or in an area otherwise nominated to be designated under this section. (e) Application An eligible applicant shall submit to the Secretary an application that at minimum contains— (1) a tax increment financing district strategic plan, including— (A) the boundaries of the tax increment district by legal description; (B) a list of the tax identification numbers for all lots or parcels within the tax increment district; (C) a description of the present condition and uses of all land and buildings within the tax increment district; (D) a description of the public facilities, improvements or programs within the tax increment district anticipated to be added and financed in whole or in part; (E) a description of the industrial, commercial, residential, mixed-use or retail improvements, downtown development or transit-oriented development within the tax increment district anticipated to be financed in whole or in part; (F) a financial plan in accordance with subsection (c) of this section; (G) a plan for the proposed maintenance and operation of the tax increment district after the planned capital improvements are completed; and (H) the maximum duration of the tax increment district, which may not exceed a total of thirty tax years beginning with the tax year in which the tax increment district is established; and (2) a financial plan for a tax increment financing strategic plan, including— (A) cost estimates for the public improvements and developments anticipated in the district strategic plan; (B) the maximum amount of indebtedness to be incurred to implement the district strategic plan; (C) sources of anticipated revenues; (D) a description of the terms and conditions of any agreements, including any anticipated assessment agreements, contracts or other obligations related to the district strategic plan; (E) estimates of increased assessed values of the tax increment district; and (F) the portion of the increased assessed values to be applied to the district strategic plan as captured assessed values and resulting tax increments in each year of the plan.