Local governments designate an area as a TIF district. The criteria for creating a TIF district are determined by state law. Financial assistance is given to projects by using new property tax revenues that result from new investments. In a TIF district, once property values rise, revenues are split in two. The first is set at the original property value before redevelopment, called the “base rate.” For a set number of years, this amount generates revenue through the local property tax process. Any funds generated over the base rate goes towards a separate fund that the district can use to incentivize investment and commercial projects, often called the increment value.