Making our community the best place to do business
Tax Increment Financing
Tax increment financing (TIF) is a method of financing real estate development costs to promote development, redevelopment, and housing in areas where it would not otherwise occur. TIF projects include constructing buildings or other private improvements such as streets, sidewalks, sewer and water, and similar improvements. TIF finances development by "capturing" the incremental property taxes generated by the increased value of new development. Without development, there is no increment to capture, but once there is development, tax increment provides a revenue stream that can be used to finance a project directly or reimburse qualifying expenditures.
To learn more about TIF in Minnesota, please check out the Minnesota Department of Revenue's website.
If you think you have a project that would qualify, have further questions, or would like help with your TIF application, contact Katie Heppner at firstname.lastname@example.org or 218-837-5950.
Opportunity Zones are a new community development program established by Congress in the Tax Cut and Jobs Act of 2017 to encourage long-term investments in low-income and urban communities.
Opportunity Funds are a new class of private sector investment vehicles authorized to aggregate and deploy private investment into Opportunity Zones. Opportunity Funds allow U.S. investors holding unrealized gains in stocks and mutual funds to pool their resources in projects located in Opportunity Zones, which will be invested in rebuilding low-income communities.
Opportunity Funds pool investments in Opportunity Zones and U.S. investors are eligible to receive:
- A temporary tax deferral fo capital gains invested in an Opportunity Fund
- A step-up basis for capital gains reinvested in an Opportunity Fund
- A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund if the investment is held for at least 10 years.