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Why would firms acquire a TIF and not use it?

Why would firms acquire a TIF and not use it?

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Answer #1

Tax Increment Financing (TIF) is the method of providing local administered redevelopment financing tool to exploit the rise in economic value towards the increase in future taxes in up-coming projects. The fund raised in TIF is used by the local governments to invest for public infrastructure and other improvement programs.

The TIF doesn’t work in favorable way for the firm always because under TIF fund raising the taxpayer’s has to put the fund in advance in special fund which does not pay any benefits for years, even though government do provide benefits in long term.

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