Tax Increment Financing
Tax Increment Financing is one of the District’s most important financing tools for encouraging development and investment in places throughout the city where it would likely not occur if left entirely to market forces. To date, the District has leveraged more than $450 million in TIF investments to produce more than $3.2 billion worth of development projects throughout the city.
How does it work?
The District provides TIF financing to developers who can demonstrate a gap in funding to support a project that will produce tangible economic developments for District residents. The District provides funds to fill the projected financing gap – often through the sales of bonds or a bank note – and the future taxes generated by the project are captured and used to pay the debt service. Often times TIF funds are used to pay for development costs associated with the project that are usually covered by a municipality such as infrastructure improvements and utilities.
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