Tax Increment Financing

Tax Increment Financing

Tax Increment Financing, or TIF, is a tool to help local governments improve and further develop their communities. Municipalities and counties can capture additional tax revenue to make the improvements they need. This provides incentives to attract businesses or help existing businesses expand, without tapping into general funds.

TIF is a way to finance infrastructure improvements in a defined geographic area. This area is known as a tax increment financing district, or TIF district. A TIF district can be created by either a municipality or by a county. A tax increment is the difference between the amount of property tax revenue generated before a TIF district is created and the amount of property tax revenue generated after. The property in a TIF district is valued in the same manner as any other property. The property in a TIF district is taxed in the same manner as any other property.

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