New York State Tax Increment Financing

Empire State Development

Program Type:

Tax Increment Financing

Eligible Geography:

New York


In New York, the use of tax increment financing by eligible local governments is authorized by Article 18-C Section 970. A TIF is a tool that allows eligible municipalities and counties to promote economic development using revenues from future funding streams. The governing body makes public improvements in a defined, eligible project area with the intent of stimulating economic development. As the development occurs, the value of the property increases within the district, and so do revenues generated from property taxes paid by the owners. Through a TIF, the governing body is allowed to use the revenues generated by the incremental increase in property tax values to pay for the improvements it made to support the development and to help pay for other infrastructure improvements.

Eligible Recipients:

Local Government; For-Profit Business

Eligible Recipients Detail:

A city, county, township, borough, redevelopment authority, industrial development agency, or other public benefit corporations are eligible implement a tax increment finance (TIF) district in areas that have a designation of being blighted.

Eligible Purpose:

General Infrastructure; Last Mile Infrastructure; Building Infrastructure; Anchor Institution Infrastructure

Eligible Purpose Detail:

Infrastructure projects must be public in nature: publicly owned infrastructure within public rights-of-way; public transit stations and right-of-way; public transit vehicles; public school construction; public beautification (lighting, streetscape, landscaping, etc); public parking structures; municipal building construction; other public buildings (e.g. police, fire stations); site preparation, demolition, cleanup of publicly owned land; or park construction.

Other Eligibility Criteria:

TIF districts may only be designated in blighted areas. "Blighted area" means an area within a municipality in which one or more of the following conditions exist: (i) a predominance of buildings and structures which are deteriorated or unfit or unsafe for use or occupancy; or (ii) a predominance of economically unproductive lands, buildings or structures, the redevelopment of which is needed to prevent further deterioration which would jeopardize the economic well being of the people.

TIF districts in New York state are subject to legal requirements such as a property condition analysis; "But for" Test (Inability of project to proceed with private resources alone); cost-benefit analysis; feasibility study; and public hearings.