Municipal Tax Increment Financing (TIF)
Tax Increment Financing is a flexible finance tool used by municipalities, towns, plantations, and the Unorganized Territory 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 up to 30 years.
Currently, hundreds of Maine communities have TIF districts, from Caribou to Biddeford, Rumford to Machias.
The Program is locally-driven: the municipality, town, or city defines the district and chooses how much of the new taxes will go to what public and private projects over what period of time, 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 town might 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 uses.
Over their term, TIF districts can return thousands to millions of dollars to a municipality. The projects financed may range from upgrading a road or adding a wing to an existing building, or to the Bath Iron Works modernization that created its dry dock ship launching facility.
If your municipality is interested in exploring the possibilities of a TIF district, please contact:
Tax Incentives Program Officer
Business and Community Development | DECD
Cross Office Building; 111 Sewall Street, Augusta, ME 04330
Forms and Instructions
- 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
- Cover Sheet (Word)
- Employment Goals (Word)
- Statutory Requirements and Thresholds (Word)