Credits

This chapter addresses the issue of "credits" or the extent to which impact fees on new development should be reduced because of revenues it generates for the same purpose. The particular approach utilized in establishing an impact fee-reducing credit within the context of impact fee methodology will vary from fee to fee and from place to place. Impact fee methodologies may and frequently do vary in how they approach the consideration of credits. Some methodologies employ a more generous approach to credits-not necessarily because they are legally required, but rather for ease of administration, to avoid legal challenge, or based on direction from the elected officials. The chapter details the credit element of impact fee calculations. It includes an overview of various forms of credit and their applications, a review of calculating certain credits based on the Banberry factors, including examples of applications, and the special case of development credits.