(1) Capital costs, including the actual costs of the construction of public works or improvements or residential, commercial or industrial development or revitalization, new buildings, structures and fixtures; the demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures and fixtures; the acquisition, upgrade or rehabilitation of machinery and equipment; and the acquisition, clearing and grading of land. Capital costs also include the actual cost of the construction, rehabilitation or repair of publicly owned infrastructure improvements located outside the boundaries of a tax increment district which are of direct benefit to a project.

(2) Financing costs, including all costs of issuance of tax increment bonds or notes, reserve funds for tax increment bonds or notes, all interest paid to holders of evidences of indebtedness issued to pay for project costs, and any premium paid over the principal amount thereof because of the redemption of such obligations prior to maturity.

(3) Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the authority of real property within a tax increment district for consideration which is less than its cost to the authority.

(4) Professional service costs, including those costs incurred for architectural, planning, engineering and legal advice and services.

(5) Administrative costs, including reasonable charges for the time spent by employees of a municipality or an authority in connection with the implementation of a project plan.

(6) Relocation costs.

(7) Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the public with respect to the creation of tax increment districts and the implementation of project plans.

(8) Costs which are found to be necessary or convenient to the creation of tax increment districts or the implementation of project plans, or for the reimbursement of prior expenditures made for any of the costs under this definition.

(1) The incremental tax revenues resulting from an increase in the total market value of taxable real property situated in a tax increment district and an increase in the business use and occupancy of such taxable real property. This paragraph applies only to ad valorem taxes on real property and tax imposed by the governing body on the use and occupancy of real property.

(2) The payment in lieu of taxes assigned to or agreed to be paid by governmental entities or nonprofit organizations with property situated or otherwise assignable to a tax increment district. Whether all or only a portion of this payment is to be considered part of the tax increment shall be determined at the time the tax increment district is created.

(3) The incremental tax revenues resulting from an increase in total taxable sales and rentals of tangible personal property and in the rendition of taxable services by vendors located in a tax increment district. This paragraph applies only to a sales tax levied by a governing body.

(4) The incremental tax revenues resulting from an increase in total gross receipts or gross or net profits or income realized by persons or entities from business conducted in a tax increment district. This paragraph applies only to those taxes levied under the authority of the act of August 5, 1932 (Sp.Sess., P.L. 45, No. 45),⁶ referred to as the Sterling Act, the act of December 31, 1965 (P.L. 1257, No. 511),⁷ known as The Local Tax Enabling Act, and the act of May 30, 1984 (P.L. 345, No. 69),⁸ known as the First Class City Business Tax Reform Act.

(1) The aggregate market value of all taxable real property located within a tax increment district on the date the district is created.

(2) In a district where the governing body has levied a tax on the business use and occupancy of real estate, the average aggregate market value of real property located within the district and used or occupied for business purposes during the last available 12-month period preceding the date of creation of the district.

(3) In a district where the governing body has levied a sales tax, the total amount of taxable sales, rentals and services subject to the sales tax of the Commonwealth and occurring within the district during the last calendar year or the last available 12-month period preceding the date of creation of the district.

(4) In a district where the governing body has levied a mercantile license tax, business privilege tax, net profits tax or similar tax for the privilege of engaging in business within the district, the total amount of taxable gross receipts, net income or net profits, as the case may be, realized by taxpayers at locations within the district during their last taxable period which ended before the date of creation of the district.