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WHAT IS THE "BUT FOR" TEST ? <br /> 11/ <br /> The basic premise behind TIF states that without municipal <br /> assistance a proposed project would not have occurred or would <br /> not have occurred within the foreseeable future . This premise is <br /> also known as the "but for" test, and all projects must satisfy <br /> it . <br /> The "but for" test consists of two separate analyses . The <br /> first analysis involves two statements . The first statement <br /> assumes "that the estimated captured net tax capacity would be <br /> available to the taxing jurisdictions without creation of the <br /> district" , and the second assumes "that none of the estimated <br /> captured net tax capacity would be available to the taxing <br /> jurisdictions without creation of the district" . <br /> 111 <br /> The second analysis, adopted by the 1995 Legislature, <br /> requires the authority to determine "that the increased market <br /> value of the site that could reasonably be expected to occur <br /> without the use of tax increment financing would be less than the <br /> increase in the market value estimated to result from the <br /> proposed development after subtracting the present value of the <br /> projected tax increments for the maximum duration of the district <br /> permitted by the plan" . <br /> 410 <br /> CASSERLY MOLZAHN & ASSOCIATES, INC. 6/10/96 <br />