the definition of tax-increment financing

Tax-increment financing (TIF) is a public financing tool used by local governments to finance redevelopment, infrastructure, and other community improvement projects. TIF works by capturing the increase in property tax revenue generated by a development project and using it to finance the costs associated with the project. The increased property tax revenue is typically generated by an increase in the value of the property resulting from the project. TIF is often used to finance urban renewal projects, downtown revitalization, and other economic development initiatives.