Tools That Support Investment & Economic Growth
Montana communities have tools available to support qualifying investment, redevelopment, and infrastructure development. BSED helps businesses, developers, property owners, and community partners understand how tax abatements, Tax Increment Financing Districts, and Targeted Economic Development Districts work.
Property Tax Abatements
BSED administers four tax abatement programs on behalf of Yellowstone County and the City of Billings under MCA 15-24-1501, 15-24-1401, and 15-24-1402. Property tax abatements may provide temporary tax relief for qualifying new or expanding businesses through five- or 10-year programs, Class 8 Machinery and Equipment abatements, and Historic Tax Abatements.
BSED can help businesses:
- Understand available programs
- Review basic eligibility requirements
- Navigate the local application process
- Coordinate with the appropriate local government
Eligibility requirements apply, and approval by the appropriate local governing body is required.
Applicants must apply prior to construction to be eligible.
Tax Increment Financing Districts
Reinvesting new growth into a district
A TIF district is primarily a tool used to address blight, deterioration, and other barriers that are preventing redevelopment or reuse of an area. It uses future increases in property tax revenue generated by redevelopment and increased property values to help finance improvements needed to overcome those barriers. Tax Increment Financing, commonly called TIF, is a financing tool that can help local governments invest in eligible infrastructure and improvements within designated districts.
When taxable value grows within a TIF district, a portion of the property tax revenue generated from that new value—the increment—may be directed toward eligible projects within or serving the district.
Property owners within a TIF district continue to pay property taxes; the district’s governing body determines how eligible tax revenue generated by new growth may be used.
Depending on the district and project, TIF can help support infrastructure such as roads, water and sewer systems, utilities, sidewalks, public improvements, and other eligible investments.
Targeted Economic Development Districts
Creating infrastructure for value-adding economic development
A Targeted Economic Development District, or TEDD, is a locally created district designed to address infrastructure gaps that may otherwise limit value-adding industrial development.
TEDDs can help communities plan for and finance infrastructure needed to support value-adding industrial investment.
Yellowstone County’s Lockwood TEDD is a local example of this approach, bringing together infrastructure planning and development to encourage long-term industrial development.
Not Sure Which Tool Applies?
You don’t need to understand every acronym before contacting us.
If you are considering a business expansion, major capital investment, redevelopment project, or industrial development opportunity, talk with Big Sky Economic Development. We can help you understand available tools, applicable requirements, and potential next steps.
Tax abatements, TIF, and TEDDs are governed by Montana law and local government requirements. Eligibility and available assistance vary by project. Contact BSED early in the planning process to discuss potential options.
