Adjusted Tax Increment Financing

Summary

Tax-increment finance has been a highly successful mechanism for catalyzing urban economic development by capturing broad future gains in a tax base to support public sector projects, such as transit systems. Federal and local government leaders should explore options for restructuring TIF in a way that allows captured funds to be distributed directly to private entities (including individual developers or public-private partnerships) for projects that generate similar broad public benefits, including recycled water co-ops and privately owned seawalls.