Tax Increment Financing (TIF) Districts

The TIF process involves issuing bonds to finance private and public investment in an area that is considered blighted and depressed.  The city issues the bond and is allowed to pay it back with the increase in local property taxes that result from the improved status of the property.  The assumption is that the redevelopment will provide new and added value, an increment, which can be used to pay back the bond which financed some of the site improvements.

Illinois TIFs

• Illinois’ law stipulates that the districts cover only “blighted” or “conservation” areas where development would not occur ‘‘but for” the presence of the district.
• Only municipalities have the authority to set up TIF districts.
• Illinois allows TIFs to remain in effect for 23 years.
• Municipalities are required to file a detailed annual TIF report with the Illinois Department of Revenue and the State Comptroller’s office.

Authorized uses of TIF funds include

• Land acquisition
• Building demolition
• Rehabilitation or repair of existing public or private buildings
• Construction of public works or improvements
• Site preparation
• Job retraining programs
• Relocation
• Financing costs, including interest assistance
• Studies, survey and plans
• Professional services such as architectural, engineering, legal, marketing and financial planning
  Source: Illinois Tax Increment Association; Illinois Department of Commerce and Community Affairs

Existing Rockford TIF Districts

• Eastside TIF
• Garrison School TIF
• Hope VI Focus Area
• Kishwaukee/Harrison Plan & Project Area #1 TIF
• Lincolnwood Estates I TIF
• Lincolnwood Estates II TIF
• North Main Street & Eddy Avenue TIF
• River Oaks TIF
• Rockford Global Trade Park TIF
• Seventh Street TIF
• Southeast Affordable TIF
• South Rockford TIF
• Springfield Corners Redevelopment TIF
• Westside TIF 3-24-06

Click here for more information about the City of Rockford,  Community Development Department, Economic Development Divison and Tax Increment Financing Districts (TIFs)

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