Tax Incremental Financing (TIF)
What is it?
Tax incremental financing (TIF) is a financial tool that can be used to promote tax base expansion and job creation. It is targeted toward geographic areas that have become blighted, or are in need of rehabilitation or conservation work, or to promote industrial development or "mixed-use" development in areas which are experiencing declining value.
Why is it important?
TIF is a financing tool that allows municipalities to invest in infrastructure and other improvements, and pay for these investments by capturing property tax revenue from the newly developed property. A well planned and executed TIF project has many possible benefits including an increased tax base for the city, school district, county and technical college, the elimination or reduction of blighted areas, the rehabilitation of areas declining in value, the creation of new jobs and income, and the creation of a partnership for economic development among the city, school district, county and technical college.
What is DMI's role?
DMI has and continues to be a resource on TIF and has produced a TIF White Paper that provides a detailed overview of the purpose, intentions, potential benefits, possible risks and additional facts of this useful financing tool. To download a copy of the white paper, click here. DMI has also provided input to City of Madison elected officials and staff when revisions to the City of Madison TIF Policy have been under consideration. The DMI Board of Directors and Economic Development committee will continue to monitor and provide input on the use of TIF as an economic development tool for downtown Madison and the city as a whole.
What Can I Do?
- Join the DMI Economic Development Committee
- Download and read the DMI produced TIF White Paper
- Learn more about TIF by visiting the City of Madison TIF website here