TIF Overview for Nebraska Mayors

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.