Tax Increment Financing (TIF)
This grant supports Vermont municipalities in financing public infrastructure projects that drive private investment and economic growth using future property tax revenue increases within designated districts.
Funder: Vermont Agency of Commerce and Community Development
Due Dates (Anticipated): July 2026 (Letter of Intent to File) | August 2026 (Application submission; not before 60 days after Letter of Intent)
Funding Amounts: No explicit cap; municipalities may retain up to 70% of incremental education property tax revenue and at least 85% of municipal increment for up to 20 years to repay infrastructure debt.
Summary: Supports Vermont municipalities in financing public infrastructure within designated districts to spur private investment and economic growth via future tax increments.
Key Information: Forecasted cycle—deadlines are projected; strict statutory and voter approval requirements apply.
Description
Tax Increment Financing (TIF) is a municipal finance mechanism that enables Vermont municipalities to fund major public infrastructure projects—such as streets, sidewalks, and stormwater systems—within designated TIF Districts. By issuing municipal bonds or other debt, towns and cities can make infrastructure investments that stimulate private sector development, increasing property values and economic activity. The incremental property tax revenue generated by these improvements is used to repay the infrastructure debt, with portions retained by the municipality and directed to the state Education Fund. After debt retirement, the increased tax revenue benefits the Education Fund in perpetuity.
