TAX INCREMENT FINANCING

Tax Increment Financing (TIF) is a public financing tool used by municipalities to encourage investment and redevelopment in areas where development may not otherwise occur. TIF allows a portion of the future growth in property tax revenue generated by increased property values within a designated TIF district to help fund improvements and eligible redevelopment costs within that district.

When a TIF district is established, the existing property tax value serves as the base value. As development and property values increase, the additional property taxes generated above that base—known as the tax increment—may be used to support eligible costs such as infrastructure improvements, streetscape enhancements, site preparation, utilities, and other qualifying redevelopment activities.

TIF does not create a new property tax or increase the tax rate. Instead, it captures a portion of the growth in property tax revenue resulting from increased property values within the designated district and reinvests those funds to support continued development and improvements.

TIF districts are established for a limited period and must meet specific requirements under Illinois law. The Village carefully evaluates proposed TIF districts and projects to determine whether they provide a public benefit and support the Village’s long-term economic development goals.

For additional TIF information, please visit the Illinois Municipal League (IML) website by clicking HERE.