Tax Incremental Finance (TIF) - Developer's Agreement

  1. What is the difference between a loan and a grant?

  2. Is it necessary to send the Wisconsin Department of Revenue (DOR) a copy of the developer's agreement?

  3. When must the public hearing notice include the cash grant reference? Is an amount required?

  4. Who makes the decision on what to include in a developer's agreement?

  1. What is the difference between a loan and a grant?

    Whenever the municipality provides funds to an owner, developer, or lessee of land by a municipality using Tax Incremental District (TID) increments, it is considered a cash grant.

    Loan versus a grant:
    • Loan – must pay back in full
    • Grant – paid for by increments from property taxes

  2. Is it necessary to send the Wisconsin Department of Revenue (DOR) a copy of the developer's agreement?

    No. You do not need to send the agreement to DOR. However, the law states a copy of the developer's agreement must be sent to the Joint Review Board (JRB) or, if the TID is terminated, retained by the city in the official records for the TID.

  3. When must the public hearing notice include the cash grant reference? Is an amount required?

    If the municipality anticipates the proposed project may include cash grants, the hearing notice must state this (sec. 66.1105(4)(e), Wis. Stats.). You do not have to explain the purpose of the cash grant or list the exact project costs.

  4. Who makes the decision on what to include in a developer's agreement?

    The municipal attorney and local governing board decide what information to include in the developer's agreement.

FOR MORE INFORMATION PLEASE CONTACT:

MS 6-97
WISCONSIN DEPARTMENT OF REVENUE
Office of Technical and Assessment Services
PO Box 8971
Madison, WI 53708-8971
Phone: (608) 261-5335 or (608) 266-5708
Email additional questions to ​tif@wisconsin.gov

​July 13, 2017