A rep for the actor said the couple is extremely happy with the new baby and both mom and child are healthy.
This marks Allen's second daughter. The actor has a 19-year-old daughter, Katherine, from a previous marriage. Baby Elizabeth is Jane's first child.
Tim is best known for his big screen roles in The Santa Clause" and "Toy Story," and from his TV series "Home Improvement."
Related Content from AccessHollywood.com:
VIEW THE PHOTOS: Top Ten Most Expensive Baby Photos
PLAY IT NOW: First Look: 'The Secret Life Of The American Teenager' (March 23, 2009)
PLAY IT NOW: Access Extended: Matthew McConaughey's Baby Mayhem