Tax Incremental Finance (TIF) Environmental Remediation (ER) (sec. 66.1105, Wis. Stats.) Creation

​​​​​​​​​Creating an ER Tax Incremental District (TID) requires a municipality to obtain Wisconsin Department of Natural Resources (DNR) certification of the site investigation report before adopting a municipal creation resolution. Costs incurred for a site investigation report are considered planning expenditures and may be reimbursed using TID increment received.

Provide DNR the following to obtain certification:

• Description of the environmental pollution in the proposed district
  
• Proposed remedial action plan
• Cost estimates for expected project costs
• Schedule for remediation (design, implementation, construction)

For more information, visit the DNR Financial Resources for Cleaning Up & Redeveloping Contaminated Properties web page, click the "ER TIDs and tax credits" tab in the middle of the page.

The municipality must email the required documents to tif@wisconsin.gov, including the DNR certification and site investigation report. The Wisconsin Department of Revenue (DOR) uses this information to confir​​m the parcels in the TID and verify the municipality followed state law.​

Requirements/Limits — ER TIDs created after November 29, 2017​

• Maximum life is 27 years with a possible 3-year standard extension
  
• Project plan must specify either:
  • All project costs will be paid within 90% of the TIDs remaining life
    
  • Expenditures will only be made in the first half of the TID life; exception – expenditures for significant environmental pollution not identified in the certified site investigation report may continue for 22 years (five years before the maximum life)
• May only allocate excess funds to other ER TIDs created under sec. 66.1105 or 66.1106, Wis. Stats.
• A municipality may designate only one ER TID created under sec. 66.1105, Wis. Stats., as excluded from the 12%​ value limit. Once the excluded TID is designated, it cannot be changed.
• When an ER TID is created under sec 66.1105, Wis. Stats., DOR sets the base value at $1
• When the ER TID is amended to add territory, the full value of the additional parcels as of January 1 of the amendment year is added to the existing $1 base value​
  

Due dates​/process

1. Follow the TID Checklist
2. Adopt the municipal resolution by September 30 of the creation year
3. Notify tif@wisconsin.gov within 60 days after adopting the creation resolution
   
4. Email required documents to tif@wisconsin.gov by October 31 of the creation year:
   • Project plan
   • Form PE-605 with supporting documents
   • TID boundary map and legal description
   • Base Value Workbook
   • DNR certification and site investigation report
5. Pay the one-time DOR fee in My Tax Account by October 31 of the creation year
6. DOR emails a certification letter before March​ of the year after the creation year
7. Code the TID number to the tax/assessment roll property after receiving the certification letter