The Tax Increment Financing (TIF) permits a community (governing body, municipality, school district, downtown improvement district, business improvement district) to borrow money through a bond issuance or other debt instrument to improve a distressed property and to repay the bonds with future tax revenue generated by the improvements to property (private and public.) As the property improvements are completed and the property’s assessed value increases; incremental tax revenue is generated.

• Publication date: April 2019