Improving Tax Increment Financing (TIF) for Economic Development

Tax increment financing (TIF) is a popular economic development tool across the United States, but it often falls short of its promise to revitalize struggling neighborhoods. In this four-page Policy Brief, University of Illinois–Chicago economist David Merriman recommends several ways that state and local policy makers can reform TIF practices going forward, illustrated by case studies that show the effect of TIF on public education, government transparency, and municipal fiscal health. The brief draws from Merriman’s Policy Focus Report, Improving Tax Increment Financing (TIF) for Economic Development, the most comprehensive assessment of tax increment financing (TIF) with practical recommendations for policy makers and practitioners.

Photograph: Eric Bowers.