TIF Overview for Nebraska Economic Development Directors

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 proposed legislation (LB 1168) would expand 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 1168 Would Add to Your Toolkit

Proposed legislation (LB 1168) would introduce 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 would more clearly insulate 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 would 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 could 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.