Tax Increment Financing

Tax Increment Financing (TIF) is a funding method used by municipalities to stimulate economic development. When a specific area is designated for improvement, the current property tax revenue from that area is measured as a baseline. As the area develops and property values rise, the increase in tax revenue—known as the "increment"—is captured and reinvested into the area for infrastructure projects, public services, or other improvements. Essentially, TIF uses future tax gains to fund present-day development, aiming to revitalize neighborhoods without raising taxes for existing residents.