The Instrument
What is a TIF bond?
A TIF bond is a municipal bond repaid from the incremental property tax revenue a new development creates. It converts years of future tax increment into upfront capital — funding infrastructure and project costs without raising existing taxes or pledging general municipal revenue.
- Repaid solely from new increment — the tax revenue a project generates above the district baseline
- Not a new tax — existing revenue continues to flow to schools, counties, and overlapping districts unchanged
- Terms set by state statute — commonly 10 to 25 years, extending to 30 in some states
- An assignable instrument — developers sell TIF bonds to a capital provider for Day-1 proceeds
The Mechanics
How a TIF bond becomes Day-1 capital.
Three steps separate a district approval from deployable funds.
The district sets the baseline
A municipality establishes the TIF district and records the existing assessed value. Every dollar of tax revenue above that baseline — the increment — is committed to the district for the statutory term.
The bond is issued against the increment
The municipality issues a TIF bond secured by the projected incremental revenue. In developer-backed structures, the developer holds the bond and bears the performance risk — not the municipality.
The developer assigns the bond for capital
Rather than collecting increment over decades, the developer sells the bond to Hageman Capital and receives the proceeds upfront — capital that deploys at closing, not in arrears.
For Developers
Why the structure matters to your capital stack.
Capital at closing
TIF repays over 10 to 25 years. Selling the bond converts that stream into funds available on Day 1 — when land, steel, and labor actually get paid.
Non-dilutive by design
Bond proceeds are neither project debt nor surrendered equity. The capital stack keeps its shape; ownership and covenants stay intact.
Gap capital that closes
Proceeds fill the space between senior debt and equity, and a committed purchase price gives the project pricing certainty before ground breaks.
Get Started
Structure determines value.
Hageman Capital reviews district and project details, identifies the applicable structure, and provides an indicative value.
Common Questions
TIF bonds, answered.
Direct answers to the questions developers and municipal partners ask most.
From the tax increment — the property tax revenue a completed project generates above the district baseline. That increment flows to bond repayment for the statutory term; existing revenue streams are untouched.
No. Tax increment financing does not raise tax rates or create a new tax. It directs only the growth in property tax revenue that a development itself creates, for a limited period defined by state law.
Value depends on the projected increment, the term, the structure backing the bond, and the district fundamentals. Developer-backed bonds price differently than municipal-backed bonds. Hageman Capital provides an indicative valuation from district and project details, typically within days.
A developer-backed bond is repaid solely from a project’s own increment, with the developer bearing performance risk. A municipal-backed bond carries the municipality’s credit. The backing determines the bond’s risk, its economics, and its value on sale.
Specialized capital providers. Hageman Capital purchases TIF bonds directly from developers as a principal investor — committing its own capital, completing diligence in-house, and funding at closing.