How do TIFs improve communities?

TIFs create short and long term benefits for communities. TIF benefits include:

No tax increases

In TIF areas properties are assessed and taxed the same way as in non-TIF areas. The only change is that during the life of the TIF the property tax revenues are distributed differently — with the incremental increase in tax revenue going to the municipality to finance some of the redevelopment expenditures within the TIF area.

Increased property values

The engine that drives TIF is investment in private property subject to the property tax. It is primarily this investment that causes the increased property values and enables the TIF to be a valuable redevelopment tool for cities.

Private investment and development

More jobs

Job Retention

Job training programs

Stronger, broader tax based

Locally controlled 

Incremental revenue is reinvested in the TIF district

Stimulates investment outside TIF district boundaries

Show All Answers

1. What is Tax Increment Financing?
2. What is a "Tax Increment"?
3. How do TIFs improve communities?
4. Are TIFs widely used?
5. What communities in Illinois us TIF?
6. How long has TIF been around?
7. Why is there a need for Tax Increment Financing?
8. Does TIF divert money from schools?
9. What kinds of TIFs are there?
10. How is a TIF created?
11. What kind of planning goes into the development of a TIF project area?
12. What conditions must exist for an area to be designated for TIF?
13. What are the opportunities for public input?
14. Who controls TIF funds?
15. Can TIFs be changed?
16. Who monitors the TIF process?
17. When does a TIF terminate?