Tax Increment Financing (TIF)

Tax Increment Financing (TIF) Districts have been available in Vermont as a public infrastructure financing tool for many years. Vermont’s TIF program has undergone many statutory changes through the years, especially since the introduction of a statewide education property tax.

Generally, a TIF District is established by a municipality around an area that requires public infrastructure to encourage public and private real property development or redevelopment. The property values at the time the District is created are determined and the property taxes generated by that original value continue to go to the taxing entities (municipality and state).

After the municipality creates a TIF District and gets approval by the State to utilize the incremental education property tax revenue for TIF debt, the municipality must get voter approval to incur debt to build public infrastructure. The public infrastructure improvements cause real property development and redevelopment to occur, and, for a limited time, a percentage of the incremental municipal and education property tax revenue generated by the new development and redevelopment may be retained to pay the infrastructure debt, with the revenue from the original value and the balance of the increment going to the taxing entities (municipality and state). After the twenty-year property tax retention period, 100% of the incremental property taxes generated go to the taxing entities.

THIS AREA IS UNDER CONSTRUCTION!

General Program Information

Overview (pdf)  
Frequently Asked Questions (pdf)
Creating a TIF District in Vermont (pdf)
TIF Primer (pdf)
TIF Powerpoint (pdf) 
Vermont Planning Atlas:  Zoom in to the municipality you wish to view.  You can click other layers to turn them on or off, as desired.
Case Studies:
     St. Albans (pdf)
     Hartford (pdf)
     Barre (pdf)
     Winooski (pdf)

TIF District Application

Letter of Intent to Apply Form and Instructions (pdf)
Application Instructions (pdf)
Application Forms (pdf)
Data Workbook (xlsx)
Financing Plan Form and Instructions (xlsx)
TIF Master Plan Policy & Procedure (pdf)
TIF Proportionality Policy & Procedure (pdf)
Location Criteria C Eligibility (pdf)
Affordable Housing Information (pdf) (VHFA Affordable Housing data)
Consultants (xls)  (ACCD/CP&R Consultant Directory)

TIF Statute and Rule

Statute:
     Title 24, see Subchapter 5
     Title 32, see Subsections f-I
     Act 69 (2017), see Sections J1-J7
TIF District Rule: Adopted May 6, 2015 (pdf)

Existing TIF Districts

Existing TIF Districts - Status (pdf)
Barre City Downtown
Burlington Downtown
Burlington Waterfront
Hartford Downtown
Milton Town Core
Milton North/South 
South Burlington City Center
St. Albans City Downtown
Winooski Downtown

TIF District Annual Reports to the General Assembly

2017 (pdf)
2016 (pdf)
2015 (pdf)
2014 (pdf)
2013 (pdf)

​For Annual Reports prior to 2012, please submit a request to kimberly.baker@vermont.gov.

Contact Us

Fred Kenney, Executive Director,
Vermont Economic Progress Council
802-777-8192

Kimberly Baker,  Grant Programs Manager
802-828-3230

One National Life Drive
Deane C. Davis Building, 6th Floor
Montpelier, VT 05620-0501