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The Tiff Over TIF: A Review of the Literature Examining the Effectiveness of the Tax Increment Financing

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  • Robert T. Greenbaum
  • Jim Landers

Abstract

California’s recent decision to discontinue tax increment fnancing (TIF) after six decades of use has triggered a re-examination of its broader use. TIF typically allows the borrowing of funds for local economic development in a specifed district, to be paid for by taxes collected in the future that are generated by the development. To put the fndings of the previous literature into context and to make them more broadly informative, this paper reviews the empirical research, provides some descriptive national analysis of TIF adoption, and provides policy recommendations informed by the empirical fndings and literature.

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  • Robert T. Greenbaum & Jim Landers, 2014. "The Tiff Over TIF: A Review of the Literature Examining the Effectiveness of the Tax Increment Financing," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(3), pages 655-674, September.
  • Handle: RePEc:ntj:journl:v:67:y:2014:i:3:p:655-674
    DOI: 10.17310/ntj.2014.3.06
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    References listed on IDEAS

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    9. T. William Lester, 2014. "Does Chicago’s Tax Increment Financing (TIF) Programme Pass the ‘But-for’ Test? Job Creation and Economic Development Impacts Using Time-series Data," Urban Studies, Urban Studies Journal Limited, vol. 51(4), pages 655-674, March.
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    Cited by:

    1. Anita Yadavalli & Jim Landers, 2017. "Tax Increment Financing: A Propensity Score Approach," Economic Development Quarterly, , vol. 31(4), pages 312-325, November.
    2. Byrne, Paul, 2017. "Economic Development Incentives, Reported Job Creation, and Local Employment," Working Papers 07791, George Mason University, Mercatus Center.
    3. Richard F. Dye & David F. Merriman & Katherine Goulde, 2014. "Tax Increment Financing and the Great Recession," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(3), pages 697-718, September.
    4. Tammy Leonard & Xi Yang & Lei Zhang & Connor Reed, 2020. "Impact of Property Tax Abatement on Employment Growth," Economic Development Quarterly, , vol. 34(2), pages 209-221, May.
    5. Ahmed Rachid El-Khattabi & T. William Lester, 2019. "Does Tax Increment Financing Pass the “But-for†Test in Missouri?," Economic Development Quarterly, , vol. 33(3), pages 187-202, August.
    6. Robin Wright & Keavy McFadden, 2023. "Social reproduction and public finance: A comparative study of TIF in California and Chicago," Environment and Planning A, , vol. 55(8), pages 2108-2127, November.
    7. Sroka, Robert, 2021. "Does the arena matter? Comparing redevelopment outcomes in central Dallas tax increment financing districts," Land Use Policy, Elsevier, vol. 105(C).
    8. Andrew Hanson, 2021. "Taxes and Economic Development: An Update on the State of the Economics Literature," Economic Development Quarterly, , vol. 35(3), pages 232-253, August.

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