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 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.
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-TIF State-By-State Map
Tax increment finance is a flexible, efficient and effective tool for transformation. CDFA has collected hundreds of case study examples.
The Latest on Tax Increment Financing in Ohio Members only Login
TIF is perennially one of the nation’s most effective and popular development finance tools, but also one of its most misunderstood and controversial. The types of projects that TIF supports in Ohio are diverse, making TIF a very flexible financing tool. Greg Daniels iwth Squire Patton Boggs, Michael DiPerna with DiPerna Advisors, and Brian Sharnsky with KeyBanc Capital Markets discuss what happens when TIF follows the same path as local property tax exemption, as well as explore creative ways to maximize this tool going forward.
Improving Tax Increment Financing for Economic DevelopmentMembers only Login
David Merriman from the Lincoln Institute of Land Policy Promoting economic explains how tax increment financing (TIF) districts work, illustrates TIF use with case studies from around the country, discusses the rationales for using TIF, describes TIF’s potential benefits and pitfalls, and reviews a large body of academic work that evaluates TIF’s effects on economic development.
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.
The Hatchery Chicago Fact SheetMembers only Login
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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.
Communities throughout the country use tax increment finance every day and CDFA collects headlines on projects and news daily.
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CDFA publishes two of the only comprehensive guides to tax increment finance. Purchase them today in the CDFA Bookstore.
DFCP Study Pack
The DFCP Complete Book Package contains all of the reference guides to study for the DFCP final exam at a 10% discount.
Tax Increment Finance Best Practices Reference Guide 2nd Edition
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The Tax Increment Finance Best Practices Reference Guide 2nd Edition addresses what TIF is, why it should be used and how best to apply the TIF tool. This guide highlights both TIF and special assessment projects across the country and how they can be applied to address common economic development issues.