Best Tax Increment Financing Lawyers in Carrigaline

About Tax Increment Financing Law in Carrigaline, Ireland

Tax Increment Financing, often shortened to TIF, is a way to fund public infrastructure by using the future increase in tax revenue expected from new development within a defined area. In simple terms, a public body invests now in roads, streetscapes, utilities, or community facilities, and the extra commercial rates generated by the growth that follows are used over time to pay back that investment.

In Ireland, there is no standalone TIF statute like in some other countries. Instead, Irish local authorities use a combination of existing legal tools to deliver what many call TIF-style or value capture financing. These tools include development contributions under the Planning and Development Acts, supplementary contribution schemes for specific infrastructure, local authority borrowing with ministerial sanction, public private partnerships, and central government grant schemes. In Carrigaline, which sits within the functional area of Cork County Council, major infrastructure is typically delivered using a mix of development contributions, Urban Regeneration and Development Fund allocations, and local authority capital works. A TIF-style approach can be explored, but it must be structured carefully within existing Irish law.

For businesses, developers, landowners, and community stakeholders in Carrigaline, understanding how a TIF-style structure might be lawfully assembled and governed is important. You will need to consider planning conditions, the Cork County Development Plan and any relevant local plans, development contribution schemes, and the rules on local authority finance, procurement, and State aid.

Why You May Need a Lawyer

Because Ireland does not have a dedicated TIF statute, any TIF-style arrangement must be built from several legal components that must fit together. A lawyer can help you to:

- Assess whether your project is suitable for a TIF-style model and identify the lawful pathways available in Ireland.

- Draft and negotiate development agreements, infrastructure delivery agreements, or collaboration agreements between a developer and Cork County Council.

- Navigate the Planning and Development Acts, including Section 48 development contributions and any Section 49 supplementary schemes that may apply to area-specific infrastructure.

- Structure local authority borrowing and revenue ring-fencing in a way that complies with the Local Government Acts, ministerial sanction processes, and public finance rules.

- Ensure compliance with EU and Irish public procurement law for design, construction, and operation of infrastructure.

- Analyse EU State aid rules and the Public Spending Code to avoid unlawful aid or funding non-compliance.

- Advise on environmental law requirements such as Environmental Impact Assessment and Appropriate Assessment, and help defend or pursue planning appeals.

- Address land assembly and compulsory purchase order issues if needed for road corridors or public realm works.

- Consider tax treatment and cashflow impacts, including VAT on infrastructure, capital goods scheme adjustments, and stamp duty implications.

- Create governance and reporting frameworks to monitor increments in commercial rates and apply them transparently to repayment obligations.

Local Laws Overview

- Planning and Development Acts 2000 to date: These Acts and related regulations govern planning permission, planning conditions, and the legal basis for contributions. Section 48 allows planning authorities to levy development contributions set out in a Development Contribution Scheme. Section 49 allows a supplementary development contribution scheme for specified public infrastructure that benefits particular development.

- Cork County Development Plan and local area policy: The Cork County Development Plan sets strategic objectives for Carrigaline, including transport, public realm, housing, and employment zoning. Any TIF-style proposal must align with these policies and any relevant municipal district or local enhancement plans.

- Development Contribution Scheme: Cork County Council adopts a scheme setting standard charges for public infrastructure. The Council can also adopt a Section 49 supplementary scheme for particular infrastructure, which functions as a targeted, area specific charge alongside general contributions.

- Local Government Acts and local authority finance: Local authorities can borrow for capital works with ministerial sanction. Hypothecation or ring-fencing of revenue such as commercial rates must comply with public finance rules, and any agreement to allocate future increments requires careful legal design and approval.

- Public procurement law: The award of public works, services, or concessions must comply with EU and Irish procurement rules. Competitive tendering, transparency, and objective criteria are central. Public private partnership structures must also follow procurement and value for money guidance.

- Public Spending Code and capital approval: Capital projects using public funds must follow the Public Spending Code, including business case development, cost benefit analysis, and staged approvals.

- EU State aid rules: If public support confers a selective advantage on an undertaking, it may constitute State aid unless covered by a block exemption or approved by the European Commission. Open access infrastructure and non selective measures are less likely to raise State aid issues.

- Environmental assessment: Projects may require Environmental Impact Assessment, Strategic Environmental Assessment at plan level, and Appropriate Assessment screening or full assessment under the Habitats and Birds Directives.

- Rating law: Commercial rates are governed by Irish rating legislation and valuation rules. A TIF-style model usually relies on growth in the rates base from new development rather than changing the rates multiplier. Any special levies must have clear statutory basis.

- Land assembly and roads powers: Delivery of roads and public realm can involve roads legislation and, where necessary, the use of compulsory purchase powers under the Housing and planning codes, with fair procedures and compensation rules applying.

Frequently Asked Questions

What is Tax Increment Financing in the Irish context

In Ireland, TIF is not a single statutory scheme. It usually means structuring a lawful package where a local authority funds enabling infrastructure and recoups costs over time from development contributions and the extra commercial rates generated by new development in the area, sometimes supported by grants and borrowing.

Is TIF specifically provided for in Irish law

No. There is no dedicated TIF Act. Similar outcomes are achieved using Section 48 and Section 49 contribution schemes, local authority borrowing with ministerial sanction, and contractual arrangements that align with public finance and procurement rules.

Can Carrigaline use a TIF-style approach

Yes, subject to legal structuring within existing powers and policies of Cork County Council, and subject to approvals. The project must align with the Development Plan and meet funding, procurement, and environmental requirements.

Will my business pay higher commercial rates because of TIF

Typically, a TIF-style model does not raise the rates multiplier. It relies on growth in the rates base from new development and improvements. However, development contributions may apply through planning conditions, and any special levies must be clearly grounded in statute.

How is the increment measured

The increment usually refers to the additional commercial rates that arise from new or redeveloped properties compared to a baseline. Accurate valuation data, clear baselines, and agreed methods for tracking new rateable properties are essential and should be set out in governance documents.

What kinds of projects in Carrigaline could suit TIF-style financing

Road and junction upgrades, streetscape and public realm works, walking and cycling infrastructure, utilities upgrades, and site enabling works that unlock zoned lands for housing and employment are typical candidates.

How do development contributions interact with a TIF-style model

Development contributions under Section 48 are standard charges. A Section 49 supplementary scheme can target a specific piece of infrastructure. In a TIF-style package, contributions help meet upfront costs, while rates increments help cover borrowing over time. The design must avoid double charging and must stay within approved schemes.

Do State aid rules affect TIF-style arrangements

They can. If public funding selectively benefits a private undertaking, State aid may arise. Many area wide, open access infrastructure works can be structured to avoid State aid or to rely on block exemptions. Legal advice is important at an early stage.

What approvals are usually required

Planning permission, adoption or variation of contribution schemes by the elected members, ministerial sanctions for borrowing, procurement approvals, and compliance with the Public Spending Code. Environmental approvals may also be required depending on project scale and location.

How long does it take to set up

Allow several months to a year for scoping, business case, legal structuring, contribution scheme processes if needed, approvals, and procurement. Timelines vary with project complexity and whether environmental assessment or land acquisition is required.

Additional Resources

Cork County Council Planning Department - Information on the Cork County Development Plan, development contributions, and local infrastructure priorities affecting Carrigaline.

Cork County Council Finance Section - Guidance on commercial rates, local authority budgets, and borrowing procedures.

Department of Housing, Local Government and Heritage - Policy and sanctioning authority for local authority borrowing and planning law oversight.

Department of Public Expenditure, National Development Plan Delivery and Reform - Public Spending Code and capital project appraisal requirements.

Office of the Planning Regulator - Planning system guidance and regulatory oversight materials.

An Bord Pleanala - National planning appeals body for certain planning and compulsory purchase decisions.

Revenue Commissioners - Guidance on VAT, capital goods scheme, stamp duty, and tax rules relevant to infrastructure and property development.

National Transport Authority - Policy and funding frameworks for transport infrastructure that may interact with local projects.

Land Development Agency - Guidance and partnership opportunities for land activation and infrastructure on strategic sites.

Competition and Consumer Protection Commission - Information on public procurement and competition principles relevant to project delivery.

Next Steps

- Define objectives: Clarify the infrastructure you need in Carrigaline, the area that could generate increments, and the planning policy basis.

- Commission a scoping study: Prepare a high level business case that models potential rates increments, development contributions, costs, risks, and timelines.

- Engage early with Cork County Council: Discuss alignment with the Development Plan, contribution schemes, and delivery options. Identify whether a Section 49 supplementary scheme is appropriate.

- Seek legal advice: Instruct a solicitor or counsel with Irish planning, local government, procurement, and State aid expertise to design a compliant TIF-style structure.

- Map approvals and programme: Set out the planning, environmental, financial, and procurement steps, with clear milestones and responsibilities.

- Prepare governance documents: Draft agreements covering revenue tracking, ring fencing within lawful limits, reporting, dispute resolution, and community engagement.

- Proceed to approvals and procurement: Bring forward the necessary council resolutions, ministerial sanctions, and tender processes in line with the Public Spending Code.

- Monitor and adapt: Once in delivery, track increments, costs, and outcomes, and adjust the programme as needed to protect value for money and legal compliance.

This guide is for information only. Because TIF-style structures in Ireland rely on multiple laws and approvals, you should obtain tailored legal advice before making commitments.