Municipal Tax Increment Financing

Municipal Tax Increment Financing (TIF) is a flexible finance tool used by municipalities, plantations, and unorganized territories to leverage new property taxes generated by a specific project or projects within a defined geographic district. Any portion of the new taxes may be used to finance public or private projects for a defined statutorily allowable period of time.

The TIF Program is locally driven: The municipality or plantation defines the district size, determines the amount of new taxes to be captured, identifies allowable public and private projects along with the term, with the whole proposal requiring local political approval.

A business may approach a municipality with a project for which a TIF district would provide financing. Or a municipality may take advantage of an already planned and financed project and create a TIF district around it, capturing a portion of new property tax revenue for specific public uses.

Over their term, TIF districts can return thousands to millions of dollars to a municipality. The projects financed may include anything from upgrading a road to adding a wing to an existing building or more. 

If your municipality is interested in exploring the possibilities of a TIF district, please contact:

Tina Mullins
Development Program Officer
Business and Community Development | DECD
Cross Office Building; 111 Sewall Street, Augusta, ME 04330
207-624-9816
Tina.Mullins@maine.gov

Helpful Links 

Application, Templates and Checklists 

Eligible entities seeking Commissioner approval before April 1, must submit complete applications before/by March 1. 

Additional relevant forms:

Educational Material 

Please call 207-624-9816 with any Municipal TIF application questions or issues. Please note, hyperlinked documents may require downloads of Adobe Reader or Word Viewer, or use of another web browser.