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Tax Increment Financing zones encourage economic development by Group of answer choices reducing or eliminating state or local taxes paid by businesses locating in the zone. reserving taxes generated by
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Tax Increment Financing zones encourage economic development by Group of answer choices reducing or eliminating state or local taxes paid by businesses locating in the zone. reserving taxes generated by a new tax base in the zone for infrastructure or other public services within the zone. cutting the interest rate on private debt issued on business investment increments in the zone. providing financing to help pay additional taxes when business expands in an impacted area. All of the above. None of the above.

User Etang
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20 votes

Answer:

Tax Increment Financing zones encourage economic development by

reserving taxes generated by a new tax base in the zone for infrastructure or other public services within the zone.

Step-by-step explanation:

A Tax Increment Financing (TIF) zone is an economic development tool that reserves the property taxes within the zone for a period of time. Thereafter, the accumulated taxes are used to finance approved infrastructure and development improvement projects in the TIF zone through developer refunds. As an economic tool, a TIF zone encourages continued development of an area by attracting investors to the location.

User Robert Brooker
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