Tax Increment Finance Resource Center
Tax Increment Finance (TIF) is a mechanism for capturing the future tax benefits of real estate improvements, in order to pay for the present cost of those improvements. TIF is generally used to channel funding toward improvements in distressed or underdeveloped areas where development would not otherwise occur.
Tax increment finance is a popular development finance tool generally used to address blight, promote neighborhood stability and inspire district-oriented development. TIF uses the increased property or sales taxes (increment) generated by new development to finance costs related to the development such as public infrastructure, land acquisition, demolition, and planning. The life of a district can be anywhere from 10-40 years, or enough time to pay back the costs or bonds issued to fund the improvements.
The tax increment from a TIF district is created without raising taxes, and also without dipping into the base tax revenues present at the time of adoption. The increment thus becomes a repayment stream for debt used to finance some aspects of what is driving the increase.
The Council of Development Finance Agencies (CDFA) and the International Council of Shopping Centers (ICSC) have collaborated with teams of Tax Increment Finance Experts from across the country to develop a series of resources that highlight the use of this bedrock development finance tool. The resources found on this webpage address what TIF is, why it should be used, and how to best apply the TIF tool. The collaborative efforts of CDFA & ICSC have developed a six-part video series, along with two TIF reference guides that will help experienced and novice TIF users alike.
View the TIF Videos Series from CDFA and ICSC
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-Understanding Tax Increment Finance
Tax increment finance is a popular development finance tool generally used to address blight, promote neighborhood stability and inspire district-oriented development. This section contains useful resources that will help you understand the basics of TIF.
Learn more about Tax-Increment Financing
CDFA Food Finance White Paper Series: Food Systems & Targeted Tools
This white paper is part of a series examining the potential creation of a food systems asset class which supports the market growth of local and regional food systems. This paper focuses specifically on targeted financing tools that can be used to geographically target local and regional food system developments.
An Elected Official's Guide to Tax Increment FinancingMembers only 
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Each year state and local governments invest in economic development strategies to promote growth in their local economies. Over the past two decades
the preeminent tool for achieving economic goals has been tax increment financing (TIF). Nicholas Greifer from the Government Finance Officers Association provides an overview on TIF for elected officials.
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-Resources
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-Building Community Support
In order for a local government to use TIF to its fullest potential, it is essential to educate the community. This section contains resources on building community support and how to obtain buy in from the community when using TIFs.
The Impact of Tax Increment Financing on Illinois CommunitiesMembers only Login
One of the most popular topics at the Illinois Financing Roundtable is how tax increment financing is used to finance projects across the state. We'll feature that topic again this year, but with a twist. Maureen Barry of Ehlers Inc. explores the broader implications of TIF and considers how this tool can be used in Illinois communities to combat population decline, support disinvested communities, and create social impact through job creation and economic development.
Financing Mechanisms for Addressing Remediation of Site Contamination
This report, produced by CDFA for the World Bank, is intended to provide information to communities and countries interested in identifying potential financing tools for the remediation and redevelopment of contaminated industrial sites. Specific audiences who will find this report useful include finance officials, contaminated site program managers, and economic developers.
View more Building Community Support Resources
-Policies and Procedures
CDFA Texas Webinar: Driving Economic Development with TIRZ
TIF, also known as TIRZ in Texas, is a flexible tool with multiple variations as to the specific revenue sources it can generate and the different ways these revenues are used to support projects financings. During this webinar, presenters will discuss the typical sources for TIRZ repayments including: property tax, sales tax, and special assessments. Our experts will also address the range of ways in which TIRZ funds can be made available to fund projects during or after construction. This webinar will bring TIRZ deal-making and best practices into focus and explore creative ways to maximize this tool in the Lone Star State.
The Use of TIF in IllinoisMembers only Login
One of the most popular topics at the Illinois Financing Roundtable is how tax increment financing is used to finance projects across the state. We'll feature that topic again this year, but with a twist. Herb Klein with Jacob & Klein explores the broader implications of TIF and considers how this tool can be used in Illinois communities to combat population decline, support disinvested communities, and create social impact through job creation and economic development.
The Impact of Tax Increment Financing on Illinois CommunitiesMembers only Login
One of the most popular topics at the Illinois Financing Roundtable is how tax increment financing is used to finance projects across the state. We'll feature that topic again this year, but with a twist. Maureen Barry of Ehlers Inc. explores the broader implications of TIF and considers how this tool can be used in Illinois communities to combat population decline, support disinvested communities, and create social impact through job creation and economic development.
View more TIF Policies & Procedures Resources
-Reporting and Analysis
Local governments should implement a transparent and thorough due diligence process when using TIFs. This section contains resources on how to analyze TIFs and how to report back to the community.
Arvada: Tax Increment Financing in ActionMembers only Login
Tax increment financing is a flexible and creative financing tool that can support development projects throughout Colorado. The Arvada Urban Renewal Authority shares their successes of using TIF for a number of different projects including housing, retail, and historic preservation.
Improving TIF Transparency and Accountability in Michigan
This report from Michigan State University seeks to contribute to the current policy discussion on TIF reform by developing the blueprint for a comprehensive, state-level database on the scale, scope and structure of TIF activities in Michigan.
CDFA TIF State-By-State Report 2015
The CDFA 2015 TIF State-By-State Report is a detailed review of the current state statutes and related regulations governing the use of tax increment financing tools throughout the country. This information has been collected by CDFA with the help from practitioners in the industry, and every effort has been made to verify the accuracy of the data provided in this report.
View More TIF Reporting and Analysis Resources
-Programs Map
-Case Studies
CDFA Food Finance White Paper Series: Food Systems & Targeted Tools
This white paper is part of a series examining the potential creation of a food systems asset class which supports the market growth of local and regional food systems. This paper focuses specifically on targeted financing tools that can be used to geographically target local and regional food system developments.
The Hatchery Chicago Fact SheetMembers only Login
The Hatchery Chicago is a non-profit food business incubator that enables local entrepreneurs to build and grow successful businesses. Accion, the area’s largest microlender, and ICNC, which runs one of the largest business incubators in the country, are the joint venture partners and building owners. The City of Chicago and its affiliates provided a portion of the land, grants, tax increment financing, and new markets tax credits to help reduce the debt the project must carry.
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-Headlines
-Publications
Tax Increment Finance Best Practices Reference Guide 2nd Edition
The Tax Increment Finance Reference Guide addresses what TIF is, why it should be used and how best to apply the TIF tool. The reference guide also highlights both TIF and special assessment projects from across the country and discusses how they can be applied to address many common economic development issues.
Advance Tax Increment Finance Best Practices Reference Guide 2nd Edition
The Advance Tax Increment Finance Reference Guide examines model policies, guidelines and procedures, and outlines the TIF process from A to Z. Throughout the book, clear guidance is offered for assessing project feasibility and monitoring the performance of active TIF districts. In addition, the guide outlines the critical elements of state TIF statutes that should be known in order to ensure project success and long term economic prosperity.
View More Publications -Training Courses
The
Intro Tax Increment Finance Course offers an in-depth look at the guiding principles and appropriate application of TIF. This course brings TIF deal-making and best practices into focus through a two-day program targeting the entire TIF community including economic developers, public agency representatives, bond issuers, legal professionals, developers, financial advisors, and other stakeholders.
The
Advanced Tax Increment Finance Course
builds upon CDFA's Intro TIF Course by focusing more concretely on structuring the deal and developing short- and long-term policies. You will also learn about performance monitoring, feasibility analysis and using TIF in conjunction with other development finance tools.
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-Upcoming Events
Fundamentals of Economic Development Finance WebCourse
January 29-30, 2020
Daily: 12:00 - 5:00 PM Eastern
The Fundamentals WebCourse is the foundation for all of CDFA’s educational offerings. This course helps attendees understand the variety of development finance tools available, from bonds, tax credits and TIF, to federal financing programs, RLFs, and access to capital lending resources.
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CDFA Federal Policy Conference
April 14-15, 2020
Washington, DC
The federal government plays a critical role in driving private and public investment in innovation, job creation, infrastructure, and community development. With the 2020 presidential election quickly approaching, development finance will be a key policy issue across the nation. The 116th Congress will also play a major role in shaping our country’s economic development policy going forward. It's up to the development finance community to focus the national discussion on smart federal policy, and CDFA is the voice of the economic development finance community on Capitol Hill. For these reasons, CDFA will host its CDFA Federal Policy Conference on April 14-15 in Washington DC.
Register
Intro Tax Increment Finance WebCourse
May 20-21, 2020
Daily: 12-5pm (Eastern)
This course brings TIF deal-making and best practices into focus through a two-day program targeting the entire TIF community including economic developers, public agency representatives, bond issuers, legal professionals, developers, financial advisors, and other stakeholders.
Register
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-Webcasts
CDFA // BNY Mellon Webcast Series: Tax Increment Finance (TIF) - Innovation & TrendsMembers only Login
The results of TIF have been compelling since its inception as a development finance tool. Lending itself to flexibility and creativity, TIF has perennially supported diverse projects across diverse communities throughout the U.S. During this installment of the CDFA // BNY Mellon Webcast Series, Fran Rood with SB Friedman and Alan Ferguson with InvestAtlanta shared the latest updates in TIF, discussed interactions between cities and other taxing bodies when developing a TIF district together, and explored the innovative ways communities are utilizing this tool to meet their ever-changing needs.
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