The EDGE Tax Increment Financing (TIF) program encourages development in the City of Memphis and unincorporated Shelby County, by investing a part of any increase in property taxes within the designated TIF area to support growth.
Local TIF Projects
In Shelby County, TIFs can be issued by EDGE, the Community Redevelopment Agency (CRA), the Center City Revenue Finance Corporation; and all six suburban Industrial Development Boards. In Memphis and Shelby County, there are six active TIF projects.
EDGE TIF PROGRAM OVERVIEW
The EDGE (Industrial Development Board) TIF program is based on the increase in property taxes within an approved TIF area. Once approved, the increase in property taxes is collected annually and allocated to the project, as outlined in the approved “Economic Impact Plan” and associated "Development Agreement" which describes what funds are collected, how the funds will be disbursed, and for what purpose the funds can be used.
- Eligible Uses: Public infrastructure, public improvements, and parking.
- Special High-Impact Projects: With added approval by the State of Tennessee Comptroller and the Director of the Tennessee Department of Economic & Community Development, TIF funds can be used to pay for privately- owned assets within the approved TIF area.
- Basic TIF Calculation: Once the EDGE TIF is approved, annual property taxes paid from the designated TIF area are compared to the “Base Year” – taxes paid from the approved area the year before the TIF was approved – to determine the increase. That increase is then allocated to the project, as outlined tin the Economic Impact Plan.
- Application: Applicants must submit an Economic Impact Plan that addresses the requirements of TCA §7-53-312.
- TIF Term: Typically, up to 20 years.
- Percentage of New Property Taxes Going to the TIF; Typically 50% -to- 75%.
- Approval Process:
- Briefing for Memphis City Council (if located within the City of Memphis) and the Shelby County Commission Economic Development Committees.
- Approval by the EDGE Board of Directors, after EDGE holds a public hearing on the project.
- Approval by the Memphis City Council (if located within the City of Memphis) and the Shelby County Commission.
- Disbursement of TIF Funds – TIF funds can either be used on a ‘pay-as-you-go’ basis, or can be used to pay for debt used to fund the project. It is the Applicant’s responsibility to determine the appropriate financing and arrange debt associated with the proposed project.
Tax Increment Financing (TIF)