TIFues : an examination of the history and current issues in tax increment financing
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Tax Increment Financing (TIF) is currently used in 48 states as an economic development tool, method of urban blight reduction, and infrastructure conservation tool. Yet, its history, in terms of legitimization, goes back as far as 1929. With such a long institutional record, much debate has occurred as to the constitutionality, effectiveness, and public benefit that accrue with the use of such a tool. To this point, TIF statue varies widely by state; some have a more “open checkbook” approach while others are more fiscally conservative. In all generality, TIF does seem to be a useful tool for “economic development”, but with many years of use comes much room for abuse. It is thus the purpose of this article to explore contemporary issues of TIF, as well as provide historical context to create a more robust analytical framework for its evaluation.