Tennessee Tax Increment Financing

Tennessee Comptroller of the Treasury

Program Type:

Tax Increment Financing

Eligible Geography:

Tennessee

Program URL:

https://comptroller.tn.gov/boards/state-board-of-equalization/sboe-services/property-tax-incentive-programs/tax-increment-financing.html

Summary:

In Tennessee, the use of tax increment financing by eligible local governments is authorized by Tennessee Code Annotated ยง 9-23-101 et seq, Tax Increment Financing Act. 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, redevelopment authority is eligible to implement tax increment financing in eligible areas of their jusrisidiction.

Eligible Purpose:

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

Eligible Purpose Detail:

Eligible projects for TIF funds include: Building acquisition; demolition; land acquisition & relocation; planning costs; public buildings; public roads; sanitary sewers; sewer expansion & repair; costs must be public in nature.

Excluded Programs:

X

Other Eligibility Criteria:

Only blighted areas may be designated as TIF districts.

Funding Match/Terms:

X

Source:

https://www.mtas.tennessee.edu/knowledgebase/using-tax-increment-financing-tennessee