Statement from Governor Phil Scott on New Report Highlighting Economic Benefits of Tax Increment Financing
Montpelier, Vt. - Governor Phil Scott today issued the following statement on a new independent report, released by the Vermont League of Cities and Towns, demonstrating the economic benefits of Tax Increment Financing. The analysis of Vermont’s TIF program, a financing tool that helps municipalities invest in public infrastructure improvement, found that in six years, the state’s 12 TIF districts generated nearly $685 million in development, nearly 4,000 jobs and saw a 68% increase in property tax revenue for the Education Fund.
In response, Governor Scott said:
“Tax increment financing is a powerful economic and community development tool, which is why I have advocated for expanding it to more communities, working with the Legislature to add six more TIF districts in 2017. For Vermont in particular, it allows cities and towns to grow and important projects to come to fruition when they otherwise may not have due to upfront financial costs and barriers.
“TIF districts and projects create affordable housing, remediate brownfields, update aging infrastructure and make transportation improvements in our downtowns. The result of these projects increases grand list value and statewide education tax revenues, which make them important to our work to grow the economy in all corners of our state. If we bring this program to small rural communities, we can improve the quality of life for Vermonters where they live and work, as well as make our towns more attractive to prospective employers and new workers.
“I appreciate the Legislature’s ongoing collaboration on opportunities to give more communities access to this valuable tool.”