By Brent Addleman | The Center Square
A new independent report illustrates how effective a tax incentive program has been in Vermont, Gov. Phil Scott said.
The governor highlighted a report from the Vermont League of Cities and Towns that demonstrates the positive economic effects of Tax Increment Financing. The program helps municipalities finance work for public infrastructure such as streets, sidewalks, and storm water management systems throughout the state.
“Tax increment financing is a powerful economic and community development tool, which is why I have advocated for expanding it to more communities, working with the Legislature to add six more TIF districts in 2017,” Scott said in a release. “For Vermont in particular, it allows cities and towns to grow and important projects to come to fruition when they otherwise may not have due to upfront financial costs and barriers.”
According to the release, the report shows that municipalities in the past six years have generated $685 million in development, created nearly 4,000 jobs, and witnessed a 68% rise in property tax revenue for the Education Fund.
“TIF districts and projects create affordable housing, remediate brownfields, update aging infrastructure and make transportation improvements in our downtowns,” Scott said in the release. “The result of these projects increases grand list value and statewide education tax revenues, which make them important to our work to grow the economy in all corners of our state. If we bring this program to small rural communities, we can improve the quality of life for Vermonters where they live and work, as well as make our towns more attractive to prospective employers and new workers.”