Seeds of Transformation
Few instruments in public finance have sparked as much promise—and as much controversy—as tax increment financing (TIF). Appearing in the 1950s, this development financing method became a creative response to urban decline that didn’t require a government to raise taxes. By funding development through future tax growth, cities could attract private investments in long-overlooked neighborhoods and spur needed infrastructure improvements.
To many, these controversies raise the question of whether TIF districts still have their place in public finance, and if they do, what reforms must be undertaken to ensure that the benefiting communities truly benefit. To address these questions, the City of Baltimore, Maryland’s TIF program is an ideal case study to understand what the future of TIFs can, and maybe should, look like.
Publication Date: August 2025
Author: Tallulah Burr
