Value capture tax increment financing districts; special rule for capital gains

(a) In general The Secretary of the Treasury (or the Secretary’s delegate), after consultation with the Secretary of Transportation, shall, with respect to designated Federal value capture tax increment financing districts as described in section 5— (1) establish a procedure to certify the original assessed value of the Federal capital gain taxes within the boundaries of a Federal value capture tax increment financing district, (2) in each year after the establishment of a Federal value capture tax increment financing district, certify with respect to such district the amount of— (A) the assessed value of capital gains collected, (B) the amount by which the current assessed value has increased or decreased from the original assessed value, subject to any assessment agreements, and (C) the amount of the captured assessed value, and (3) conduct such analysis as is necessary to determine the maximum amount available of Federal guarantees of qualified transit-oriented development bonds, but not to exceed an annual amount to be determined by the Secretary. (b) Federal value capture tax increment financing district For purposes of this section, the term Federal value capture tax increment financing district means a targeted redevelopment area within a municipality, county, or other government entity, from which all or a portion of projected future property tax revenue increases is temporarily dedicated to finance infrastructure improvements (or other investments) with the objective of stimulating economic development. (c) Rulemaking and regulations Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall issue such rules or regulations as may be necessary or appropriate to carry out the purposes of this section. (d) Notification to Congress At least 30 days before issuing a letter of intent for establishment of a Federal value capture tax increment district, the Secretary of the Treasury shall notify in writing the Committee on Banking, Housing, and Urban Affairs, the Committee on Finance, the Committee on Environment and Public Works and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure, the Committee on Ways and Means, and the Committee on Appropriations of the House of Representatives of the designated Federal value capture tax increment districts. The Secretary shall include with the notification a copy of the nomination application and designation as well as the evaluations and ratings for each designation. (e) Assessment agreement For purposes of this section, the term assessment agreement means an agreement that establishes, with respect to a Federal value capture tax increment financing district— (1) the tax base, (2) the amount of increased tax collections to be dedicated to such district, (3) procedures for collecting funds, and (4) approved uses for funds.