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Long Term TIF Management:  Part One in a Series

By Matt Eckerle, Principal, February 22, 2018

Tax Increment Financing (TIF) is a well-recognized economic development tool in Indiana and nationally. TIF is used in Indiana to help facilitate development in areas where new development might not otherwise occur. TIF areas in Indiana, depending on their date of establishment and the presence of outstanding debt, may have a term of 25 years to 30 years. Given the frequent legislative changes affecting TIF, active management is a necessity.

Not actively managing your TIF areas can lead to strategic financial issues downstream. As TIF areas mature it is important to methodically analyze them to understand their past, present and future. 

Active management of TIF areas is especially important if you plan to issue debt payable from tax increment. You must know the possible revenue impacts of the expiration of your TIFs or portions of your TIF area.

The term of a TIF area depends on the date of the Declaratory Resolution’s adoption. This chart for Indiana illustrates the impact of expiration dates for three basic configurations:    

Date TIF Established

Expiration Date

TIF area is established before July 1, 1995.

TIF expires the later of 2025 or following the final maturity of obligations outstanding as of July 1, 2015.

TIF area is established between July 1, 1995 and July 1, 2008.

TIF expires 30 years after the adoption of the Declaratory Resolution.

TIF area is established after July 1, 2008.

TIF expires 25 years after the date the first obligation payable was incurred.

In circumstances where a TIF area has been expanded over time there can be different expiration dates for portions of the area based on the resolution dates for the initial establishment and subsequent expansions. These “nested” TIF areas add complexity to your TIF strategy which must be considered in your short-term and long-term planning for the capture of incremental assessed value and using TIF revenues.

In an upcoming issue of Vision we will highlight additional important items to consider in the TIF planning process. The evolution of a TIF area and its components may not be obvious. Umbaugh can assist you with tracking and maximizing your TIF area’s potential.

If you have any questions, please contact us at .(JavaScript must be enabled to view this email address).


Information in this article was believed current as of the date of publication. As you know, changes occur frequently. The information presented is of a general educational nature. Before applying to your specific circumstances, please contact us at


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