TIF CALCULATOR

Calculate Value
Calculate Time
[?] This is the amount of additional tax value that will be added to the property. Say for example if the base value if the property was $2 million and the value after project completion is $8 million, then the increment would be $6 million.
[?] This is the average mill rate within the municipality the TIF is intended to be created. This can generally be found on your most recent tax bill or can be obtained through the assessor of the taxing entity.
[?] Municipalities often limit the amount of the TIF incentive that are willing to contribute to the development. This typically varies between 75 and 100%
[?] For up-front financing through municipal sponsored general obligation bonds this will be the anticipated bond interest rate. For pay-go financing structures this would be the greater of what a bank would charge for interest in monitizing the note (typically 75 to 150 basis points above current commercial loan rates), or the rate of return the developer can demonstrate they are typically used to earning on cash investments.
[?] The number of years for which the developer pays taxes on the increased valuation created after TIF creation. This is either determined by the amount of incentive needed or is a negotiated parameter of the TIF
[?] The number of years before the developer starts paying additional taxes on the new value created within the disctrict. In most cases this is two years.

Our Tax Incremental Financing Calculator
can estimate the value of a TIF incentive in today's dollars

Applying financial mathematics, this calculator accounts for the future-time-value of money and converts the future payments from a tax increment revenue obligation into a value in today's dollars. In other words it estimates the amount of a loan that could be paid off over the entire life span of the TIF. Details about how this works can be found in our white paper available here.

Alternatively this calculator can also solve for the length of time required to achieve a certain net present value given the parameters of the revenue obligation used. Contact us today and we can help you navigate the process of obtaining TIF financing.

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