What is tax increment financing? Tax increment financing ("TIF") is a popular economic development tool being used by many governments. Typically, taxes on the increased value of real property resulting from private improvements are exempted, and payments in lieu of those exempted taxes are collected from the property owners to pay costs of public infrastructure. Tax increment financing laws (including what entities may employ a TIF, the property that may be exempted, and period of the permitted exemptions, and the uses for which the payments in lieu of taxes may be expended) vary from state to state.
Advisory services. Peck Shaffer can explain how a TIF works and its benefits and risks. Peck Shaffer can outline the steps necessary to create a TIF the time necessary for each step. We prepare client memoranda regarding TIF and continuallytrack legislative changes to the TIF statues..
Assistance with the TIF process. TIFs can be very complicated transactions involving specific notice requirements, negotiations between the governmental entity and a developer, negotiations among various governmental entities, and sound projections of the expected payments in lieu of taxes. It is best if Peck Shaffer is involved early in the discussions of a TIF in order to understand and assure the parties expectations. In addition, many TIFs involve the issuance of debt to pay the costs of public infrastructure in expectation of the collection of the payments in lieu. Peck Shaffer’s unique combination of experience in general public law, state constitutional law, federal tax law and public finance law often permits creative structures employing TIFs and economic development tools to achieve our customers’ goals.
