Tax Increment Financing (TIF) is a public financing tool that helps communities stimulate private investment and revitalize areas in need of development or redevelopment. When a TIF district is created, the current property tax base is frozen for taxing bodies, and any new property tax revenue generated from increased property values—called the “tax increment”—is reinvested back into the district. These funds can then be used to support improvements that encourage growth, such as upgrading public infrastructure, rehabilitating buildings, or preparing sites for redevelopment.

In Rockford, TIF is used strategically to attract new businesses, retain existing employers, and transform underutilized or blighted areas into productive, vibrant spaces. By reinvesting locally generated tax revenue, the program helps create jobs, strengthen the local tax base, and enhance the overall quality of life for residents and businesses throughout the city.

Contact the Economic Development team to learn more about how TIF is used and how applicable to projects.