TIF Financing is a common form of financing used by local governments to encourage projects in areas where development is unlikely to occur without assistance due to poor site conditions, disinvestment, environmental remediation costs, or other factors causing impediments to development. TIF Financing can only occur in locally designated TIF districts, in which additional resources are made available for development/redevelopment projects. TIF Financing is intentionally designed to support a long-term increase in local resources to pay for streets, schools, and more.

Establishment of a TIF district requires a public process during which an eligibility study is prepared. TIF funds can only be used to support TIF-eligible expenses as defined by the IL TIF Act.

 The Village is in the process of establishing a new TIF district on North Halsted Street.  View the Eligibility Report and Plan at this link 

 Click here to view our current 2025 TIF Map (as of August 11, 2025).

How do TIF incentives work? 

All projects in Homewood using TIF financing follow similar steps. Projects within each of the Village's six TIF districts must follow this process, which is carefully documented and detailed in redevelopment agreements or other public documents with the Village.

Walk through the life of a TIF district in 5 steps:

What are the benefits of TIF financing? 

TIF Financing is an important tool for Illinois communities for attracting and retaining businesses and spurring development in areas that are challenging to build in (especially in areas where vacant land is not plentiful). The careful use of TIF financing has a range of benefits, including: 

• Spurs New Development: In areas with difficulties that slow development, including high tax rates, environmental damages or hazards, or poor infrastructure, TIF financing can jump-start development. New development helps upgrade local infrastructure and create local jobs, 

• Eliminates Tax Increases: TIF financing places payments for new infrastructure supporting development on the developer, rather than the local government. This avoids tax increases or new taxes to pay for infrastructure, instead paying for new infrastructure with money coming directly from those benefitting from it.

• Creates Safe Investments: TIF financing requires that developers pay for costs upfront, being reimbursed by the increase in tax revenue that they pay. This avoids the Village having to pay upfront for projects based solely on projections and only rewards developers for the real growth they bring to Homewood. (often referred to as "pay as you go")

• Retains Local Control: Allows for local control of development, and creates new tools for the local government to dedicate resources for specific areas needing reinvestment. 

• Produces Long-Term Resources: The most important benefit of TIF financing starts after a TIF district ends. TIF districts create a significantly higher tax base and create an infrastructure that can benefit future development many decades in the future. 

Where can TIF financing be used?

TIF financing may not be freely used across Homewood; instead, projects utilizing this financing strategy must be located within one of seven designated TIF districts approved by the Village Board of Trustees. These districts vary greatly in size and number of properties. TIF districts in the State of Illinois may be active for up to 23 years, with 13-year extensions available for all districts. Districts may be created at any time with local approval.

Want to learn more?

TIF Financing serves as an important tool for creating a financially sustainable community. 

The Village of Homewood recently approved a redevelopment agreement supporting TIF financing for Apparel Redefined, a custom apparel printing and monogramming company, as they move their headquarters to Homewood at a site within the Northeast TIF District. The Village has provided a step-by-step guide for how TIF financing will be used for this project. Learn more here.  

For more resources, visit the Illinois Tax Increment Association or the Illinois Department of Commerce and Economic Opportunity websites to learn more.