Tax Increment Financing (TIF)

Tax Increment Financing (TIF) provides a means to capture new property taxes within a designated area for costs associated with growth in that area.

A TIF reduces the burden on existing state and local taxpayers to pay for costs related to the economic development.

A TIF can be used for any capital project that is serving or benefiting the economic development area through utility improvements, roads, drainage, land acquisition and development, buildings and facilities.

A TIF area created after 1995 is limited to thirty (30) years.

A TIF often results in the creation of new jobs, providing new income, sales and other tax revenues for both state and local governments.

A TIF DOES NOT take away funds from other taxing units.