Tax Increment Financing

Illinois statute provides for municipalities to designate areas Tax Increment Financing (TIF) districts. These areas qualify for designation by suffering from such factors as blight, obsolescence, deterioration, inadequate utilities, deleterious land-use, declining land value, among others. The City of Moline currently has 11 TIF Districts.

TIF districts are created to assist in the redevelopment of a particular area. A baseline for property taxes is developed. All taxing bodies still receive the same amount of property tax revenue as before the TIF district was designated. Also, no additional taxes are placed on properties in the TIF district. As improvements are made to a property its value increases. The difference between the increased value and the baseline is the increment. The increment is used by the local government to make public improvements to the redevelopment area.

The funds for the public improvements can be made available either by issuing bonds at the beginning of the project or distributing the increment as it becomes available every year.

In order for a project to qualify for TIF financing, the developer has to prove that “but for” public assistance the project would not move forward. There must be a number of impediments that make the project impractical without public assistance. The City has developed a process to ensure that public monies requested are indeed necessary.

Click here to view the City of Moline's established TIF Districts.

Eligible Costs

The categories of permissible redevelopment costs are included in 65 ILCS 5/11-74.4-3 (q) and 65 ILCS 5/11-74.6-10 (o). These are described below in summary. Please consult the appropriate state statute for a detailed explanation.

  1. Costs of studies, surveys, development of plans, and specifications, implementation and administration of the redevelopment plan.
  2. Marketing costs.
  3. Property assembly costs.
  4. Costs of rehabilitation, reconstruction/repair, or remodeling of existing public or private buildings.
  5. Costs of the construction of public works or improvements.
  6. Costs of eliminating or removing contaminants and other impediments.
  7. Costs of job training and retraining projects.
  8. Financing costs.
  9. Approved capital costs.
  10. Reimbursement to school districts.
  11. Relocation costs.
  12. Payment in lieu of taxes.
  13. Costs of job training.
  14. Interest cost incurred by a redeveloper related to the construction, renovation or rehabilitation of a redevelopment project.
  15. Cost of construction of new housing.
  16. Cost of day care services.

Joint Review Board Meetings

View minutes from Joint Review Board meetings:

Illinois Tax Increment Association

Visit the Illinois Tax Increment Association website.

Interested Parties Registration Form