Tax Increment Financing (TIF)

Provided by Department of Economic & Community Development

Description:TIF provides a municipality with a local tool to finance the cost of private development. A municipality may use all or a portion of the new property taxes that result from an investment project within a designated district to assist in that project's financing. The municipality has the option of issuing bonds (which are retired using the tax increment), or paying the tax increment directly to the investing business to cover project costs. Tax Increment Financing districts may be designated for a period of up to 30 years. Bonds may be issued under this program for up to 20 years. The designation of a TIF district requires a public hearing and the majority vote of the municipal legislative body.

More on Tax Increment Financing (TIF)
Eligibility:Any business making significant capital investments within their municipality, where the municipality is willing to provide financial support through the use of the revenue stream of new property taxes resulting from these investments.
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