Tax Increment Financing
Tax Increment Financing (TIF) is a financing option that uses expected future gains in state or municipal property taxes from a development or redevelopment project to finance improvements that will create those gains. It has been used as a community development tool for decades. TIF is offered by jurisdictions to attract private capital to boost local economies and attract unique, innovative projects.
TIF is a great source of gap financing, which can increase the financial feasibility of projects. It has been used in various sectors including retail, commercial, residential, and mixed-use development. For a retailer, TIF would help improve the returns on sustainability components of a major retrofit or new construction, such as the addition of solar PV panels or the construction of an efficient prototype.