Payment In Lieu of Taxes (PILOT)
The District’s PILOT financing tool is very similar to its TIF programs. Like TIF, PILOT is used to leverage new tax revenue that will be generated once a piece that has been producing little or no property tax revenue is developed into a higher and better use. To date, the District has leveraged former federally-controlled land to produce pools of PILOT funds that can be used to pay for capital projects such as parks and infrastructure within the Anacostia Waterfront Initiative Framework.
The District raised about $140 million with the US Department of Transportation PILOT – where the city used the future taxes that will be generated by the federal agency’s $360 million headquarters project which was developed by the JBG Cos. along the Anacostia River. The District can use those PILOT funds to pay for infrastructure and park improvements for a number of projects including.
