Tax Increment Reimbursement Program (TIRP)

The Tax Increment Reimbursement Program (TIRP) enables the City of Raleigh to commit a portion of future property tax revenues from new developments to reimburse developers for public infrastructure and other community benefits that would not be provided without the incentive.  
 
The program has three key features:

• The program is flexible and can be used to fund any project or use for which the City has legal authority and policy alignment to enter into a reimbursement agreement. 

• The program is fiscally responsible, as the program design guarantees that participating developments will generate net positive revenue to the City in every year that the reimbursement is active. 

• The program is low risk, as the City borrows no money, and reimbursement payments do not start until the public benefits are constructed and in public use. 

The purpose of a Tax Increment Reimbursement is to:

• Support public-private partnerships to provide needed infrastructure and public benefits.  

• Provide an opportunity for the City to enhance development projects beyond what can be required by code.  

• Encourage economic development, jobs, and services in areas of need. 

Any proposal for a Tax Increment Reimbursement agreement falls under the City’s Partnership Policy and will be evaluated and approved or rejected following the same process outlined in that policy. 

A successful Tax Increment Reimbursement agreement requires that both the developer and the City see a benefit from the arrangement.

Eligible projects can fall into one of two broad categories. Economic development projects that create jobs and add tax base can be eligible to the extent that infrastructure, facilities, or attractions that are open to and usable by the public, whether publicly or privately owned, are provided to standards beyond those required by City policy or code.  

Eligible projects could also include publicly dedicated infrastructure and should generate enough new tax revenue to support a meaningful investment. Infrastructure examples include parks and greenways, improved sidewalks and bike lanes, enhanced streetscapes, and environmentally friendly features like green stormwater systems. 

To qualify for the program, eligible projects must:

1. Be either economic development projects that create jobs and grow the tax base, or development projects that provide public infrastructure enhancements not otherwise required.
2. Be public facilities or infrastructure where reimbursement would not occur without support from the program.
3. Align with the City's priorities (Strategic Plan, Comprehensive Plan, Area Plans, or Capital Improvement Plan).
4. Generate enough new property tax revenue to cover the reimbursement within a reasonable time.

Parties interested in a Tax Increment Reimbursement can start the process by submitting a letter of interest to: 

Ken Bowers 
Deputy Planning Director 
Planning and Development 
919-996-2633 
ken.bowers@raleighnc.gov

The letter of interest should contain enough specifics to determine whether the proposal is likely to meet the terms of the adopted Partnership Policy. Potential applicants should review the policy prior to submitting a letter of interest. 

• A description of the proposed development project, including the estimated increase in tax value. 

• A description of the proposed public infrastructure/facilities and any other public benefits, emphasizing the benefits that accrue to the general community as opposed to the occupants and patrons of the development.  

• An estimated cost of the infrastructure/facilities and benefits, and the portion of this cost to be funded through the Tax Increment Reimbursement.  

• Relationship of the proposed project and public improvement to adopted plans, including the City’s 2030 Comprehensive Plan, Area Plans, the Strategic Plan, and the Capital Improvement Plan.  

• Whether the developer will seek participation by Wake County in addition to the City of Raleigh, thresholds for seeking County participation are detailed in the policy. 

Limitation or cap on the total number of Tax Increment Reimbursement Programs

The City’s financial commitment for all approved projects may not exceed 2% of the City’s annual property tax levy in any given year. The capacity limit will be evaluated annually by City staff and is expected to change based on the City’s tax rate and total assessed property values.