Tax Increment Financing

EPCG is the clear leader in Maine in the design and implementation of Tax Increment Financing (TIF) programs for the benefit of both business and municipal clients.

Our approach is focused on the needs of our clients. For our private sector clients, TIF is most commonly used to reduce required financing related to the establishment of a new business operation, or the expansion of an existing one. EPCG works closely with these clients to maximize the benefits of TIF and secure their investment in job creation for Maine.

TIF’s aren’t only a business incentive, however. In fact, sometimes the business receives no TIF funding at all. Communities are often the recipient of TIF funds to support construction of public facilities (such as utilities or other public infrastructure) that support economic development. Funds can also support planning studies, or staff time related to economic development programming. Towns and cities can also decide to establish revolving loan funds and façade improvement programs to support the growth of their local business community, as well as establishing education or training funds for residents.

There’s another often overlooked TIF benefit to communities. When new business investment occurs, it generally results in an increase in a community’s total valuation. Sounds good, right? Not necessarily, at least when it comes to county taxes, school funding, and state revenue sharing. The higher the valuation, the higher the county tax, and the lesser your share of state revenues and school appropriations. One of the key features of a TIF is that it allows the municipality to shelter the new valuation from the calculations of State revenue sharing, State education subsidy and County tax assessment.

Whether you’re a business or municipality considering the benefits of TIF, we’ll work closely with you to design a program to advance your interests.