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The Cost of Development: How TIF Relates to Property Values Across Nebraska School Districts
Journal article   Peer reviewed

The Cost of Development: How TIF Relates to Property Values Across Nebraska School Districts

Phuong Nguyen-Hoang, Trang Hoang and Josephine Gatti Schafer
Economic development quarterly, Vol.40(1), pp.27-40
02/2026
DOI: 10.1177/08912424251387557

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Abstract

Tax increment financing (TIF) is a widely used tool that bridges economic and community development, especially in Midwestern states. This study examines how TIF relates to school districts’ property values in Nebraska, using difference-in-differences and event-study designs with 2010–2023 data from a balanced panel of school districts. The authors find that, while TIF use is not significantly associated with property values on average, associations vary by district socioeconomic status. Specifically, TIF use is positively associated with property values in advantaged school districts (lowest poverty or highest income), whereas in disadvantaged districts (highest poverty or lowest income), property values either remain unchanged or show negative associations. Although these effects are modest in size, their distribution is highly uneven, suggesting that TIF may exacerbate rather than reduce existing inequalities. The study has implications for how TIF is deployed to benefit communities.
Economic Development community development event study school districts tax increment financing

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