Tax Increment Financing (TIF)
Under the Tax Increment Financing (TIF) program, businesses are given the incentive to construct new industrial or commercial facilities by receiving direct benefit from the property tax increase caused by the added value of those new facilities.
How It Works
- Business constructs new industrial or commercial facility
- New facility increases property tax assessed on the business
- City councils or county board of supervisors may use the additional property tax to:
- Finance direct grants or loans to the business.
- Offset the costs of public improvements or provision of utilities to serve the new private development.
- Provide the local match for federal or state economic development assistance programs.
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