Tax increment financing - Definition and Overview

Tax increment financing (TIF) is a way for governments (usually municipal authorities) to help finance new capital projects by taking advantage of expected property tax returns. A city, for example, may designate as a TIF district a plot of land that is planned to be redeveloped. Then the city can borrow against expected increased tax revenues to build infrastructure such as sewers and transportation services.

TIF is one form of new financial techniques being used in Transit-oriented development.

See also

• municipal finance
• public finance

External link

• An anti-TIF opinion website (http://hellskitchen.net/develop/olympics/tif.html)