Environmental TIF Law Went Into Effect on October 1
The new Environmental Remediation Tax Increment District (ERTID) law, which was passed by the Wisconsin Legislature and signed into law by Governor Tony Evers earlier this year (as 2021 WI Act 149) went into effect on October 1, 2022. The new law, which was a top legislative priority for WEDA during the 2021-22 legislative session, provides local communities with greater flexibility to use ERTIDs to revitalize contaminated properties and spur redevelopment.
Under previous state law, Wisconsin communities could only use an ERTID to finance project costs associated with the investigation and removal of environment pollution from the ground and water in the TID. They could NOT use an ERTID to address environmental pollution within existing structures and buildings, as the demolition or redevelopment of contaminated buildings were not an eligible ERTID project cost.
2021 WI Act 149 remedies this issue by modifying TIF law to qualify the redevelopment or demolition of existing structures contaminated with harmful substances as an eligible ERTID project cost. While the change is small, the economic development impact of the bill will be substantial, providing communities with a narrow, yet effective tool to encourage the redevelopment of contaminated structures and create new economic opportunities. Also, please keep in mind that a community’s first ERTID is exempt from the state’s 12% TIF limit.