Requires the department of community, trade, and economic development to: (1) Conduct a military improvement zone pilot program to authorize and promote financing tools that encourage the development of high-quality infrastructure and affordable housing in the areas nearest to federal military bases and to determine the effectiveness of the program in increasing the development of high-quality infrastructure and additional affordable housing in improvement zones;

(2) Develop operational guidelines and criteria for the pilot program;

(3) Provide technical assistance to counties and cities participating in the pilot program; and

(4) Provide grants to counties and cities participating in the pilot program, subject to funding for this specific purpose.

Provides that, subject to certain requirements, twenty-five percent of the estimated sales and use taxes collected on the sale or use of tangible personal property and labor and services used in the construction of affordable housing projects in military improvement zones, less any credits allowed for local governments, must be deposited in the military improvement zone account.

Creates the military improvement zone account.