A tax increment grant (TIG) is an economic development incentive where a municipality rebates a portion of property tax increases back to developers or businesses for a defined period. Unlike direct tax reductions, the property owner pays full taxes but receives a grant equal to some portion of the tax increase attributable to their development. TIGs incentivize property improvements and development by sharing resulting tax increases with investors. Grant periods might last 5-15 years, sometimes with declining percentages. TIGs are structured as grants rather than tax reductions for administrative and legal reasons. They require properties to actually pay taxes before receiving rebates, ensuring municipal cash flow and satisfying requirements that exempt properties cannot receive municipal grants.