Municipal Tax Increment Financing (TIF) Tax Increment Financing is a flexible finance tool used by municipalities, plantations and unorganized territories to leverage new property taxes generated by a specific project or projects within a defined geographic district. Any portion of the new taxes may be used to finance public or private projects for a defined period of time for up to 30 years.
The Program is locally-driven: The municipality or plantation defines the district size, determines the amount of new taxes to be captured, identifies allowable public and private projects along with the term of up to 30 years, with the whole package requiring local political approval.
A business may approach a municipality with a proposal for investment for which a TIF district would provide financing. Or, a municipality may take advantage of an already-planned and financed project and create a TIF district around it, capturing a portion of new property tax revenue for specific public uses.
Over their term, TIF districts can return thousands to millions of dollars to a municipality. The projects financed may include anything from upgrading a road to adding a wing to an existing building or more.
If your municipality is interested in exploring the possibilities of a TIF district, please contact:
Development Program Officer
Business and Community Development | DECD
Cross Office Building; 111 Sewall Street, Augusta, ME 04330
- TIF Statute: 30-A M.R.S. §§ 5221-5235
- TIF Rules: 19-100 C.M.R. ch. 1, §§ 1-7 (effective December 22, 2009) (Word)
- 36 M.R.S. §305(1): Property Tax Administration
- 36 M.R.S. §1603: UT Educational and Services Tax
- 36 M.R.S. §1606: UT Educational and Services Tax
- MTIF Inventory, as of March 8, 2022 (Please note: Any questions related to a specific TIF District and Development Program, or to request a copy of a TIF application, contact the applicable municipality directly)
Application, Templates and Checklists
Eligible entities seeking Commissioner approval before April 1, must submit complete applications before/by March 1.
- Municipal Tax Increment Financing(MTIF) Application
- Checklist for MTIF Application
- Downtown Redevelopment Plan Criteria Checklist
- Employment Goals- Occupational Cluster Descriptions for Section 4 of MTIF Application
- Supplemental MTIF Application Sections 3 & 4 pages
- MTIF Application Frequently Asked Questions
Additional relevant forms: