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As a Nebraska governing body member, you vote on substandard and blighted declarations and redevelopment plan approvals — decisions that shape your community’s development trajectory. Here is a high-level overview of how TIF works under the Community Development Law and what recent changes under LB 1135, signed into law in April 2026, mean for your role.

TIF in Plain Language

TIF captures only the increase in real property taxes generated by new development. The base value of taxes continues flowing to all taxing bodies — city, county, school district, community college, and others. No existing revenue is redirected. Any interest and penalties on delinquent taxes go to the taxing bodies, not the TIF fund. The excess value is set aside for 15 years (or 20 for extremely blighted areas) to pay eligible redevelopment costs. When the period ends, all revenue flows permanently to every jurisdiction.

What LB 1135 Changes

Conduit revenue bonds are now available as a new bond category that is not a CRA general obligation — payable solely from pledged project revenues. Taxpayer agreements create enforceable developer shortfall guarantees with super-priority lien security. This means the CRA’s broader assets are insulated from project-specific risk, and the developer contractually bears the performance risk.

What You Are Voting On

You vote on the substandard and blighted declaration (after a blight study, planning commission review, and public hearing) and the redevelopment plan approval. The cost-benefit analysis must demonstrate the project is in the community’s best interest and would not proceed without TIF. The CRA must give 30 days’ written notice before accepting a redevelopment contract. Public notice requirements include published notice and mailed notice to affected neighborhood associations and political subdivisions. These safeguards ensure transparency throughout the process.

Free Educational Support

Hageman Capital provides free TIF education to Nebraska governing body members. Connect with Whitney Peterson, our Director – Government Relations, for a no-obligation conversation.

Nebraska’s Community Development Law provides one of the most established TIF frameworks in the Midwest. For Economic Development Directors managing developer relationships and project pipelines, this overview covers how the framework works and how LB 1135, signed into law in April 2026, expands your structuring options.

Nebraska TIF: The Framework

TIF in Nebraska captures only ad valorem real property tax increment — no sales tax or franchise fees. The tax division period runs 15 years for standard projects or 20 years for projects in areas declared extremely blighted. The Community Redevelopment Authority (CRA) — or the city acting as the authority — is the entity that prepares redevelopment plans, issues TIF bonds, and enters into redevelopment contracts with developers. A substandard and blighted declaration is required before any redevelopment plan can be adopted, and a cost-benefit analysis demonstrating the but-for test is mandatory for every project.

The process follows a defined sequence: blight study, planning commission review (30-day window), public hearing with published and mailed notice, governing body approval, redevelopment contract negotiation, and bond issuance. The Notice to Divide Tax must be filed with the county assessor by July 1 of the calendar year in which the tax division becomes effective — a hard deadline that, if missed, delays the entire project by a full year.

What LB 1135 Adds to Your Toolkit

LB 1135 introduces two significant new tools. First, conduit revenue bonds — a new category of TIF bond payable solely from specifically pledged revenues rather than being a general obligation of the CRA. This more clearly insulates the CRA’s other activities and assets from the risk of any single project. Second, taxpayer agreements — contracts where the developer guarantees any shortfall in tax increment revenue and can agree to limit their right to challenge property assessments. Taxpayer agreement liens carry parity with property tax liens and take priority over existing and subsequent mortgages on the property.

For ED Directors, the practical implication is significant: you can now offer developers a structure with enforceable guarantees and super-priority lien security, while presenting your governing body with a deal that clearly insulates the CRA from project-specific risk. This combination makes developer-backed TIF Bonds more attractive to capital providers like Hageman Capital, which translates to better pricing for the developer and stronger projects for your community.

How This Helps You Close Deals

Developer-backed TIF Bonds give developers upfront cash when they sell the bond to a capital provider like Hageman Capital. The developer does not have to wait 15 to 20 years for increment to accumulate — they receive construction capital at closing. For your pipeline, this means you can offer an incentive that is financially compelling to developers, defensible to your governing body, and carries reduced CRA exposure. Nebraska’s established procedural framework — blight studies, planning commission review, public hearings, governing body approval — provides the foundation your elected officials need to approve projects with confidence.

Your role is to navigate this process efficiently: identify qualified project areas, match the right developer with the right opportunity, prepare a thorough cost-benefit analysis, manage the statutory timeline (especially the July 1 deadline), and structure the redevelopment contract to protect the community while keeping the deal competitive. Every deal you close successfully becomes a template for the next one — building your city’s reputation as a place where TIF-supported projects get done.

Eligible Costs and Project Types

TIF-eligible costs in Nebraska include site acquisition, demolition, environmental remediation, streets, water and sewer infrastructure, storm water systems, electrical and gas extensions, street lighting, public parking, landscaping, facade enhancements, and professional fees. The developer bears the cost of constructing private improvements from their own funds. Projects must be located in areas declared substandard and blighted — but the statutory criteria are broad enough to encompass a wide range of aging, underutilized, or deteriorated areas across the state.

Hageman Capital as Your TIF Resource

Hageman Capital works alongside Nebraska ED Directors as a free TIF structuring resource — helping you evaluate project feasibility, navigate the Community Development Law process, and structure developer-backed TIF Bonds that get deals across the finish line. We complement your existing team — never replace it. Connect with Whitney Peterson, our Director – Government Relations, and let’s talk about what is in your pipeline.

If you are a Nebraska mayor exploring TIF for your community, this overview covers what you need to know. The Community Development Law provides a proven framework, and LB 1135, signed into law in April 2026, adds conduit revenue bonds and taxpayer agreements that further strengthen municipal protections.

What TIF Is and What It Is Not

TIF captures the increase in real property taxes generated by new development. No new taxes are created. No existing revenue is redirected — the base value of taxes continues flowing to all taxing bodies as usual. Only the excess value, the growth that would not exist without the project, is set aside for 15 years (or 20 for extremely blighted areas) to pay eligible redevelopment costs. When the TIF period ends, all revenue flows permanently to every taxing jurisdiction.

How TIF Works in Nebraska

Nebraska TIF requires a substandard and blighted declaration, a redevelopment plan reviewed by the planning commission, public hearings, governing body approval, and a cost-benefit analysis demonstrating the but-for test. The CRA issues bonds and enters into redevelopment contracts with developers. The Notice to Divide Tax must be filed by July 1 — a critical deadline. Under LB 1135, conduit revenue bonds are not general obligations of the CRA, and taxpayer agreements provide enforceable developer guarantees with super-priority liens.

Your Role as Mayor

You champion projects publicly, ensure the governing body has a sound cost-benefit analysis, and maintain transparency through the public hearing process. You are not expected to be a TIF structuring expert — your CRA, financial advisors, and resources like Hageman Capital handle the technical details. What you communicate to constituents is straightforward: TIF grows the tax base without spending public money or creating municipal debt.

Getting Started

Hageman Capital provides free TIF education to Nebraska mayors. Connect with Whitney Peterson, our Director – Government Relations, for a no-cost consultation.

Under prior Nebraska law, TIF bonds issued by a CRA were general obligations of the CRA. With the passage of LB 1135, signed into law in April 2026, Nebraska now authorizes conduit revenue bonds — a fundamentally different structure that shifts project-specific risk from the CRA to the developer. Here is why this distinction matters and why developer-backed structures are the right choice for most projects.

CRA General Obligation Bonds: The Prior Framework

Under the prior framework, TIF bonds were payable from the CRA’s revenue, income, receipts, and proceeds. While not a debt of the city, they exposed the CRA’s broader asset base to bondholder claims. If a specific project underperformed, bondholders could look to the CRA’s other resources for repayment. This created risk concentration when the CRA was involved in multiple TIF projects simultaneously.

Conduit Revenue Bonds: What LB 1135 Enables

LB 1135 creates conduit revenue bonds payable solely from specifically pledged revenues — isolating project-specific risk from the CRA’s other activities. The developer’s taxpayer agreement guarantees any shortfall, with liens carrying parity with property tax liens and priority over existing and subsequent mortgages. The developer can also agree to limit their right to challenge property assessments, providing greater revenue certainty for bondholders.

The Developer Gets the Same Proceeds Either Way

The bond’s value is determined by the projected ad valorem increment — which is the same regardless of whether the bond is a CRA general obligation or a conduit revenue bond. What changes is the risk allocation. Developer-backed conduit revenue bonds give the developer competitive proceeds when selling to Hageman Capital, insulate the CRA from project-specific risk, and deliver the same economic development outcomes for the community. Municipal leaders get what they want, developers get what they want, and the CRA’s broader obligations remain protected.

What You Can Do Now

With LB 1135 now in effect, Nebraska CRAs have clear statutory authority for conduit revenue bonds and taxpayer agreements. Developer-backed TIF bonds with strong redevelopment contract guarantees and the new taxpayer agreement framework give municipalities a powerful, low-risk tool for incentivizing development. Hageman Capital purchases developer-backed TIF Bonds and works with Nebraska municipal leaders and CRAs at no cost. Connect with our team to evaluate the right structure for your community.

When a Nebraska developer secures a TIF Bond from their CRA, they have options for monetizing it. Understanding these options helps municipal leaders evaluate developer proposals and structure deals that deliver the best outcomes for the community.

Option 1: Hold the Bond and Collect Increment Over Time

A developer can hold the TIF Bond and receive payments as ad valorem increment is collected each year. Nebraska’s 15-year standard period (20 for extremely blighted areas) means the developer waits up to two decades for full repayment — while construction costs are front-loaded. For most developers, tying up capital in a long-duration receivable is financially inefficient, especially when construction lenders expect equity at closing.

Option 2: Borrow Against the Bond

A developer can use the TIF Bond as collateral for a loan, providing some upfront liquidity at a discount. The lender will not advance full value, interest adds cost, and the developer retains the ongoing loan relationship. Nebraska’s ad-valorem-only increment framework (no sales tax or franchise fees) may lead lenders to apply more conservative valuations compared to multi-revenue-stream states.

Option 3: Sell the Bond to Hageman Capital

Hageman Capital purchases developer-backed TIF Bonds, providing upfront cash at closing. No ongoing loan, no interest accruing, no collection uncertainty. The developer trades a 15-to-20-year receivable for day-one capital. Under LB 1135, signed into law in April 2026, taxpayer agreements with super-priority lien security strengthen the bond’s value and support competitive purchase pricing.

Why This Matters for Municipal Leaders

When a developer plans to sell their TIF Bond to Hageman Capital, it signals the deal has financing certainty, the structure is sound, and the project is more likely to complete on schedule — which means the increment starts flowing on time. For municipalities and CRAs, that is the best possible outcome.

Hageman Capital works with both municipalities and developers to structure Nebraska TIF Bonds for maximum value. Connect with our team to learn more.

Nebraska municipal leaders and CRAs field developer inquiries regularly. Understanding what drives commercial real estate developers — how they evaluate markets, what makes a project financially viable, and what they need from your municipality — is essential to deploying TIF effectively under the Community Development Law.

How Developers Choose Where to Build

Developers evaluate population growth, employment centers, infrastructure quality, regulatory environment, and the competitive incentive landscape. Nebraska cities — from Omaha and Lincoln to smaller communities across the state — compete for developer attention. The city that can articulate its TIF process clearly and move efficiently from application to bond issuance wins the conversation. Nebraska’s established Community Development Law framework, combined with active CRAs in many cities, positions municipalities well — and LB 1135, signed into law in April 2026, strengthens that position further with conduit revenue bonds and taxpayer agreements.

The Financial Anatomy of a Development Project

Every project has a capital stack — equity, debt, and incentives. TIF fills the gap between total cost and what private capital alone can cover by capturing the incremental property tax revenue generated by the completed project. When the developer sells their TIF Bond to Hageman Capital, that future revenue stream becomes upfront cash — reducing equity requirements and accelerating the project timeline. In Nebraska, where TIF captures only ad valorem property taxes (no sales tax or franchise fees), the increment projection is especially sensitive to assessed value accuracy and development timing.

What Makes a Nebraska Project Ideal for TIF

Nebraska TIF requires a substandard and blighted declaration — the threshold requirement. Projects best suited for TIF include those in areas with deteriorated structures, defective street layout, environmental contamination, or other conditions that meet the statutory blight criteria. Eligible costs include site acquisition, demolition, utilities, streets, environmental remediation, and public improvements. The developer bears the cost of constructing private improvements from their own funds. Projects with significant public infrastructure needs and a projected assessed value increase large enough to generate meaningful increment are ideal candidates.

Positioning Your Municipality

Developers value certainty and speed. Having an active CRA, pre-identified substandard and blighted areas, and a clear application process positions your city to compete. Understanding the July 1 Notice to Divide Tax deadline and the 30-day planning commission review period helps you set realistic timelines for developers considering your community.

Hageman Capital: Bridging Municipalities and Developers

Hageman Capital purchases developer-backed TIF Bonds and works with Nebraska municipal leaders at no cost. Connect with our team to learn more about positioning your city for developer success.

When Old Town Companies developed the North End project in Carmel, Indiana, they faced a challenge Nebraska developers encounter regularly: a community-serving, mixed-use project that needed creative financing to bridge the gap between total cost and what private capital alone could cover. TIF and Hageman Capital’s ability to purchase TIF bonds made the project possible. For Nebraska municipal leaders working within the Community Development Law — now strengthened by LB 1135, signed into law in April 2026 — this case study illustrates how developer-backed TIF works in practice.

The North End Project

North End is a mixed-use development in Carmel, Indiana: 168 high-end apartments (including 40 units for individuals with intellectual and developmental disabilities), plus office and retail space. Old Town Companies served as the developer, and the City of Carmel provided TIF support backed by the real estate. The project addressed real community needs in an area with limited development along the Monon Trail — but mission-driven housing rarely pencils without public incentives.

How TIF Made It Work

Old Town was financing through a Freddie Mac program requiring municipal incentives and affordable unit set-asides. TIF provided the incentive, but Old Town needed upfront capital at loan closing — not years of incremental payments. Hageman Capital purchased the TIF bonds, delivering the equity required to close the construction loan. The project closed in December 2021 and is now complete, generating long-term tax base growth for Carmel.

What Nebraska Municipal Leaders Should Take Away

The principles translate directly to Nebraska’s framework. TIF makes projects feasible that would not otherwise proceed — satisfying the cost-benefit analysis and but-for test Nebraska requires. Developer-backed TIF bonds shift risk from the CRA to the developer. The ability to sell the bond to a capital provider transforms TIF from a long-term revenue stream into immediate construction capital. Under LB 1135, conduit revenue bonds and taxpayer agreements now further insulate the CRA while providing lenders with super-priority lien security.

Nebraska’s ad-valorem-only TIF framework means the increment consists solely of real property tax increases — making accurate assessment projections and conservative timeline assumptions especially important. The 15-year standard period (20 for extremely blighted areas) shapes the amortization structure differently than longer-term states.

Hageman Capital: Your TIF Partner at No Cost

Hageman Capital purchases developer-backed TIF Bonds and serves as a free resource for Nebraska municipal leaders and CRAs. Connect with our team to see how TIF can transform development in your community.

Tag: Nebraska