Tax Increment Financing (TIF)

Tax Increment Financing (TIF) is a public financing method that promotes economic development in designated areas. When a local government identifies a blighted or underdeveloped area, it freezes the current property tax revenue. As developments occur and property values rise, the increased tax revenue—known as the "increment"—is used to fund infrastructure improvements and attract further investment in that area. Essentially, TIF allows communities to reinvest growth dollars back into the area, helping to stimulate revitalization without raising taxes. It's a way to finance projects by capturing the future tax benefits they generate.