Tax Increment Financing Act

The Tax Increment Financing (TIF) Act allows local governments to promote economic development by funding improvements within a designated area, called a TIF district. When new investments, like buildings or infrastructure, boost property values, the increased property taxes (the "tax increment") are set aside to fund projects such as roads or parks. These funds are reinvested into the district to encourage further development without raising taxes district-wide. Essentially, TIF leverages future tax increases caused by development to finance current improvements, stimulating growth while benefiting the community.