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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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
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To address local disparities and help struggling areas thrive, governments at all levels have spent billions of dollars on a range of geographically targeted, or "place-based," economic development programs — mostly in the form of financial incentives — designed to boost job creation and business investment, incentivize real estate development, or increase property values in specific places. The Pew Charitable Trusts performed a literature review of more than 100 studies to better understand the reasons for the lack of effectiveness of place-based programs.
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 Login
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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Effectiveness of TIF in Austin, TXMembers only Login
The City’s use of tax increment financing in four TIF districts has resulted in positive benefits, including increased tax revenues, redevelopment of disused property, removal of land from a floodplain, and development of more housing. The City recently adopted new, more specific policies that could enhance the benefits the City realizes from the use of tax increment financing.
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CDFA Reframe, Build, Plan: Restoring America's Local Food Systems
CDFA released the final publication of the CDFA Food Finance White Paper Series, Advancing Local Food Systems Through Development Finance. This webinar provides an overview of this publication as we review CDFA's framework for expanding traditional financing and attracting capital to local food systems through the Reframe, Build, Plan approach.
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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