Tax Increment Financing

What is Tax Increment Financing (TIF)?
  • Enacted on August 13, 1975, Public Act 197 of 1975, otherwise Known as the “DDA Act,” authorized the use of Tax Increment Finance to correct and prevent the deterioration of downtown areas in the State of Michigan.
  • Under P.A. 197, TIF Authorities capture the year-to-year growth in property values, on an annual basis, and reinvest those dollars in “public facilities,” as defined by the statute, within the TIF district.
  • DDAs were created to solve an externality or “market failure” occurring in downtown areas.
  • PA 57 of 2018, updated PA 197.
Why is TIF needed?

Downtown’s were in a state of decline Post WW II: Primarily due to Federal Policies -
  • Federal Highway Administration
  • Veterans Administration
  • Housing & Urban Development Resulted in –
  • Outward migration from cities
  • Loss of investment in downtowns
  • High levels of vacancy and abandonment
How are TIF funds utilized by DDA’s?
  1. Infrastructure improvements projects – Streetscapes, street lighting, floodwall protection, parks & open space etc.
  2. Catalytic Projects
  3. Historic Preservation
  4. Marketing & Promotions

Educational Materials
For more information about TIF and the MDA's position on TIF reform, click on the links below:

The Importance of Tax Increment Financing for Downtown Revitalization: This presentation was given on Oct. 17, 2015 during a House of Representatives committee hearing in Lansing.

MDA's Position on TIF Reform

Quick View PA 57 Requirements


PA 57 2018 

Link to the Department of Treasury TIF Reporting Site and DDA Reporting Form