Tax Increment Financing (TIF) is a public financing tool that is used to support community development projects. TIFs allow cities to borrow money upfront (usually through bonds) and repay that debt using the future increase in property tax revenue from a designated area where new development or renovation occurs. A TIF is designed to ultimately bring more money into the local government’s treasury by raising the value of the property that is taxed. Higher property values mean more property tax revenue for the jurisdiction, in the long-run.