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Tax Increment Financing
The City of East Providence offers developers in the Waterfront District the option of Tax Increment Financing, or "TIF". Tax increment financing is the use of projected increased local tax revenues from an anticipated development to fund site and area improvements or provide incentives to developers which, in
TIF can be used for land assembly and acquisition, demolition, infrastructure development, to match federal grant sources and to provide developer incentives. Local governments benefit from higher property tax revenues once the bonds are retired and may receive more wage taxes if the development project results in a creation of new jobs. TIF can also advance broader policy objectives, such as MBE/WBE programs, linkage programs such as affordable housing, and public amenities such as open space.
Administration fees for TIF funds are: one percent of the total funds requested at the time of award; and .5 percent annually for on-going administrative costs of the TIF agreement, such as yearly reporting and monitoring.
Please see the approved Waterfront District Tax Increment Financing Project Plan for project area and description, infrastructure needs, and general TIF information. An application for TIF, a TIF application process sheet, and a description of TIF fees are also available. Please call 401/435-7539 if you have any questions about TIF or the Waterfront District.