Tax Increment Financing (TIF) is an economic development tool used by local governments to allocate all or a portion of the new, additional taxes generated by a project over a limited period of time to pay for public infrastructure and other improvements related to that project.
Tax increment is the difference in tax revenues generated by the project in the plan area after the project has been completed, compared with the tax revenues generated in the plan area before the development plan was adopted. The difference in these tax revenues pays the costs of improvements to the public infrastructure serving the plan area.
In Knox County (typically for those areas outside qualified redevelopment and urban renewal project areas), the County IDB has established policies and procedures for the facilitation of Tax Increment Financing. The program is primarily for economic development projects that provide improvement to public infrastructure in blighted and under-utilized areas of Knox County and in other properties designated by Knox County Commission and Knoxville City Council.
The County IDB has always viewed its core mission as the promotion of economic development and growth, and in particular, commercial and industrial projects that involve a significant capital investment and the generation of new jobs with wages in excess of the annual average wage. Therefore, a project seeking TIF assistance that fits within the County IDB’s core mission will encounter greater flexibility and receptivity by both the County IDB and governmental authorities.
TIF Application Process Overview
Approval of Economic Impact Plan by County Commission, County IDB and City Council (when within corporate limits of City of Knoxville and when city taxes are utilized) are required when TIF application is considered.