Understanding TIF

What is TIF?

Tax Increment Financing (TIF) is one of the few public financing tools available for municipalities in the State of Indiana. It is used sparingly in the City of New Haven to achieve redevelopment goals.

Overview: TIF and Increment Development 101 (PDF)

How Does It Work?

When a TIF District is created, a base valuation of the property in that area is established. All taxing Authorities continue to receive tax revenue from the base valuation. Taxes from increases in assessed value go to the TIF account and pay debt or other financial obligations necessary to complete the redevelopment project. Only after the obligations are met, the TIF District closes, and all taxing authorities benefit from the new, higher valuation.

Economic Development & TIF Presentation (PDF)

What Benefit Does the Public Get From TIF?

  • Blight mitigation or elimination
  • Infrastructure improvements
  • Public amenities
  • Affordable housing
  • Consultations & Studies

Rules for TIF

TIS Districts ad use of TIF is governed by Indiana State Law. The City's use is further restricted by policies established by the City Council and Redevelopment Commission.