Tax increment financing (TIF) is a financing method local governments can use to pay for improvements that will draw private investment to an area. Tax increment financing isn’t a new tax; instead, it redirects some of the ad valorem tax from property in a geographic area designated as a Tax Increment Reinvestment Zone (TIRZ) to pay for improvements in the zone. The benefits of a TIRZ include: 1) Builds needed public infrastructure in areas lacking adequate development to attract businesses. 2) Encourages development, thereby increasing property values and long-term property tax collections. 3) Reduces the cost of private development by providing reimbursement for eligible public improvements.

Tax increment financing (TIF) is a financing method local governments can use to pay for improvements that will draw private investment to an area. Tax increment financing isn’t a new tax; instead, it redirects some of the ad valorem tax from property in a geographic area designated as a Tax Increment Reinvestment Zone (TIRZ) to pay for improvements in the zone. The benefits of a TIRZ include: 1) Builds needed public infrastructure in areas lacking adequate development to attract businesses. 2) Encourages development, thereby increasing property values and long-term property tax collections. 3) Reduces the cost of private development by providing reimbursement for eligible public improvements.