Tax increment financing (TIF) has exploded in popularity on the municipal finance landscape as cities are increasingly competing for scarce public resources to fund economic development projects. Previous studies evaluate TIF’s efficacy and its ability to spark economic growth. This research expands the evaluation of TIF by questioning the widespread understanding of TIF as a “self-financing” tool through an analysis of its risks and full cost to taxpayers.
The authors present a case study of the Hudson Yards redevelopment project in New York City, the country’s largest TIF-type project.
Authors: Bridget Fisher and Flávia Leite