Tax Increment Financing for Urban Projects: An Alternative to Fund Infrastructure in Latin American Cities?

Tax Increment Financing for Urban Projects: An Alternative to Fund Infrastructure in Latin American Cities?

Published on:

In Latin America and the Caribbean (LAC) the overall infrastructure investment gap has undermined the regions ability to sustain recent levels of economic growth. Estimates suggest that the region needs to invest at least 5% of its GDP for a prolonged period of time to effectively close the infrastructure deficit. This paper examines the potential behind Tax Increment Financing (TIF), a form of Land Value Capture (LVC), to help cities invest in the much-needed urban infrastructure.

Inter-American Development Bank | Tax Increment Financing for Urban Projects: An Alternative to Fund Infrastructure in Latin American Cities?