What is Tax Increment Financing (TIF)?
Tax Increment Financing (TIF) is a unique mechanism that enables an urban renewal authority or board to use the net new tax revenues generated by projects within a designated urban renewal area to help finance future improvements. TIF is a new source of tax revenue, not an additional tax, that would not be available but for new investment.

When a redevelopment project is being planned, the urban renewal authority or board analyzes how much additional property and/or sales taxes may be generated once it is completed. That “tax increment” then can be used by the urban renewal entity either to finance the issuance of bonds or to reimburse developers for a portion of their project costs. In either case, the new tax revenue that is created must be used for improvements that have a public benefit and that support the redevelopment effort, such as site clearance, streets, utilities, parks, the removal of hazardous materials or conditions, or site acquisition.

Source: Denver Urban Renewal Authority

Show All Answers

1. What is an Urban Renewal Authority?
2. What is the purpose of an Urban Renewal Authority for Avon?
3. What is an Urban Renewal Plan?
4. What is the Main Street Redevelopment Project?
5. What is a Conditions Survey (Blight Study) and why do one?
6. What is Tax Increment Financing (TIF)?
7. Can TIF always be used to finance a project?
8. If an area is described as “blighted” what does that mean?
9. What is the legal definition of a blighted area?
10. Why would I, a property/business owner, want to be included in an urban renewal area?
11. Does being in an urban renewal area affect my property values?
12. Does being in an urban renewal area mean my property will be condemned?
13. Who decides what the final urban renewal plan will look like?
14. If my property is in an urban renewal area, what flexibility do I have to improve it?
15. What is the process for establishing an urban renewal area and advancing and urban renewal plan?