Virginia Tax Increment Financing

Virginia Economic Development Partnership

Program Type:

Tax Increment Financing

Eligible Geography:

Virginia

Program URL:

https://law.lis.virginia.gov/vacode/title58.1/chapter32/section58.1-3245.2/

Summary:

In Virginia, the use of tax increment financing by eligible local governments is authorized in Virginia Code § 58.1-3245.2, Tax increment financing. 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, or township 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: Public facilities including, but not limited to, roads, water, sewers, parks, and real estate devoted to open-space use as that term is defined in § 58.1-3230 within redevelopment and conservation areas to encourage the private development in such areas in order to eliminate blighted conditions.

Excluded Programs:

X

Other Eligibility Criteria:

Only blighted areas may be designated as TIF districts. Public hearings are also required before an area can be designated a TIF district.

Funding Match/Terms:

X

Source:

https://www.cdfa.net/cdfa/tifmap.nsf/index.html?open&state=VA