What is tax increment financing (TIF) in Louisville?

Tax increment financing (TIF) is a development incentive used in Louisville to finance projects by capturing future property tax increases.

Are all TIFs in Louisville activated?

No, surprisingly, many TIFs approved by the local government are not activated, meaning no funds are disbursed to developers.

How can the public comment on TIFs in Louisville?

Public hearings are held before TIFs are considered by the Louisville Metro Council, allowing citizens to voice their opinions.

Home / Business and Economy / Many TIFs Approved in Louisville Go Unused

Many TIFs Approved in Louisville Go Unused

1 Dec, 2025

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Summary

Tax increment financing (TIFs) are often approved but not activated.
Many TIFs are approved without money flowing to developers.
Public hearings are held before TIFs are considered for approval.

Many TIFs Approved in Louisville Go Unused

Tax increment financing, or TIFs, are a frequently discussed development incentive in Louisville, often tied to large housing or mixed-use projects. However, the mechanism of TIFs themselves and their broader impact on the city receive less attention. Understanding this tool is crucial given its anticipated continued use in the region.

A surprising fact about Louisville's TIFs is that a significant number approved by local government are never activated. This means that despite public awareness of a TIF's approval, the associated project may not receive any tax dollars, dispelling the assumption that every approved TIF translates into public funding for development.

This overview aims to explain TIFs and their application in Jefferson County. The process includes public hearings where citizens can voice opinions before the Louisville Metro Council reviews and approves TIFs, underscoring their role in public-private partnerships and providing opportunities for public participation.