New businesses mean more jobs, more customers, and, in turn, more private investment.
TIF designation also helps retain existing businesses that might otherwise find more attractive options elsewhere. TIF also helps to overcome the extraordinary costs that often prevent development and private investment from occurring on environmentally contaminated and other properties. As a result, the TIF area itself improves and property values go up. Since the Federal and State governments have greatly reduced their support for economic development, Tax Increment Financing permits municipalities to accept some of this responsibility without raising local property taxes. Without TIF benefits, a deteriorating area will not improve.