Tax Increment Financing (TIF)
Igniting Growth. Saving Taxpayers Money.
The Iowa League of Cities and the Professional Developers of Iowa have joined forces to highlight the transformative impact Tax Increment Financing (TIF) has had on communities across the state.
TIF Project Impact
Your insights are vital to understanding the impact of Tax Increment Financing (TIF) on local development over the past decade. We are gathering information on how TIF-supported projects have influenced job creation, economic growth, and community well-being. Your responses will help inform future policy decisions and ensure that development strategies align with the needs and priorities of our communities.
What is Tax Increment Financing?
Tax Increment Financing (TIF) is a tool cities and counties use to support development in specific areas. As property values rise due to improvements, the extra tax revenue generated is reinvested back into that area to fund more projects—like roads, parks, or business incentives—without raising taxes. Once the costs are covered, the increased tax revenue goes back to schools and other public services.
How TIF Supports Iowa Communities
TIF has become a vital tool for cities—especially in rural areas—looking to grow and thrive. Across Iowa, communities have used TIF to:
- Upgrade essential infrastructure, including roads, water systems, and utilities
- Support local business growth by funding expansion and development
- Revitalize downtown areas, making them more attractive and vibrant
- Encourage new housing, helping meet local demand and attract residents
For many small cities, these improvements would be out of reach without TIF. By reinvesting the increased tax revenue from development, communities can stay competitive, boost their economies, and improve quality of life for residents.
