The Iowa House of Representatives recently passed a bill, HF 2460, that would reform the state’s controversial tax incremented financing (TIF) program. TIFs are used by cities as a means for attracting investment to particular communities. A city generally borrows money to make investments in a TIF site, and pays off those debts over several years with the tax revenues generated from businesses that locate there. However, TIFs have proven to be slightly controversial in Iowa over the last several years, as cities increasingly have come to rely on the mechanism and in some cases have used the tool to convince businesses to relocate from neighboring communities, finance city buildings, and lock up tax revenues meant for schools and counties. The reforms in this bill would create expiration dates for some TIF districts, would safeguard against cities poaching development from nearby cities, add additional public hearings on TIF decisions, and would increase influence over TIF activity for counties and school districts. The measure will now head to the Iowa Senate.