Mine-Scarred Lands Initiative Tool Kit: Tax Incentives
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Tax incentives vary greatly in their amount, sponsoring organization or agency, and uses. Additionally, they vary according to the mining communitys location. Some example of tax incentives include:
Federal or state tax credits reduce the amount of income tax owed.
Cities or counties may agree to reduce taxes owed or exempt property owners from paying taxes for a period of time.
Forgiveness of Back Taxes.
Cities or counties may agree to waive back taxes on contaminated properties in hopes of spurring revitalization efforts.
Enterprise Zones/Enterprise Communities/Renewal Communities.
Cities, counties or states may have Enterprise Zones/Enterprise Communities/Renewal Communities that offer tax advantages or incentives to businesses locating in the zone boundaries.
Tax-Increment Financing (TIF) Districts.
Cities create TIF Districts to make public improvements within those districts that will generate private-sector development. During the development period, the current tax rate for a certain number of years is frozen but taxes derived from increases in property assessment values after the redevelopment occurs either go into a special bond fund or are used for future growth in the district.