Tax Increment Financing Districts (TIF)

Illinois is one of 49 states that empower their municipalities with the economic development tool known as Tax Increment Financing (TIF) districts. It's a means to provide economic support to areas that are dilapidated, blighted or face development challenges that might not be overcome without intervention. 

Geographic areas that qualify to be designated as a TIF district are then eligible to use TIF funds toward a variety of expenses: studies, surveys, planning costs, professional services, land acquisition, site preparation and demolition, public works and infrastructure costs and more. Each TIF district is created with a defined list of its eligible costs and projects. Resources aimed at supporting economic development, such as TIF districts, enterprise zones and other tools, can be combined as long as all eligibility requirements are met.

How TIF Funds are Generated

A TIF district cannot be created without opportunities for public comment, the consent of applicable taxing bodies and the approval of a municipality's elected officials (the City Council, for instance). Once it's been established, the TIF district's "base EAV" ( the pre-TIF equalized assessed value) is determined. Taxes collected according to that "base EAV" continue to be distributed to all affected taxing bodies. Any increased amount of property taxes generated within the TIF district as a result of improvement and new development are captured and allocated to pay for eligible expenses within the district for the life of the TIF. This increased value is known as the "increment."

Once a TIF expires or is dissolved, the new EAV that's generated by any growth that has occurred benefits all applicable taxing bodies. Illinois TIF law allows a district to exist for 23 years, although extensions can be requested (subject to approval by the Illinois Legislature).

TIF District Oversight

Public input and a public approval process are essential to establishing a TIF district. Once created, the district's progress and activities are then monitored by a Joint Review Board, made up of representatives of all applicable taxing bodies. 

Edwardsville's Current TIF Districts

There are two geographic areas in Edwardsville that are currently designated as TIF districts, known as TIF 2 and TIF 4. View a map of Edwardsville's current TIF districts.

View the ordinances creating (and amending) Edwardsville's current TIF districts, along with status reports: 

View a map of the current TIF districts and enterprise zones in Madison County.

Contact Us

General questions and inquiries about potential TIF uses and projects can be directed to James Arnold, the City's economic and community development coordinator, by email or phone: 618-692-7533.

Learn More About TIF Districts

TIF districts are commonly used by towns, villages and cities of all sizes in Illinois. In fact, the Illinois Municipal League documented more than 1,400 active TIF districts in the state as of 2020. To help educate the public about this economic development tool, the Illinois Municipal League has put together a resource (PDF) that explains the TIF process in detail, and also maintains a list of Illinois municipalities with TIF districts.

The state of Illinois offers tools and programs to spur growth and revitalization in areas that may be underperforming or declining. Two such resources in use locally are:

  • Enterprise Zones: The state of Illinois created its Enterprise Zone Program in 1982 to provide businesses with the incentives, exemptions and resources to equip them to locate or expand within each designated zone. The Illinois Enterprise Zone Program currently includes more than 95 zones and is administered at the state level by the Illinois Department of Commerce and Economic Opportunity.  More Details
  • Tax Increment Financing (TIF) districts: Illinois is one of 49 states that allow local units of government to designate geographic areas that are underperforming, declining or in need of a jump-start to spur development or redevelopment. As of 2020, there were more than 1,400 active TIF districts in 97 Illinois counties, according to Illinois Department of Revenue data.