Tax Increment Financing (TIF)
What is the TIF program?
Tax Increment Financing (TIF) is a community redevelopment and economic development tool authorized by the State of Nebraska and used by developers to engage in a public-private partnership with the City of Omaha to finance eligible project costs from increases in property tax payments. This tool encourages and incentivizes the private sector to partner with the City of Omaha to accomplish economic and community development which involves revitalization in the city. TIF is used to help finance certain redevelopment project costs within a Community Revitalization Area (CRA), typically older areas within the city.
What are the benefits of participating in the TIF program?
Project owners or developers use the TIF Program to benefit in a couple of ways. The program allows project owners or developers to gain access to new markets because of the incentive. Also, TIF helps to mitigate some financial risks associated with development in some CRAs making projects more financially feasible. Read more about an Overview of the TIF Program or Specific Information.
How can I participate?
First, determine your project’s eligibility by utilizing the Community Revitalization Area (CRA) Lookup Tool. Also, visit this webpage to learn more about the TIF Program.
Note: A CRA designation must be in place in order to apply for TIF. An extremely blighted area (EBA) is a designation in addition to the CRA designation. An EBA designation, as it pertains to TIF, may allow a project to receive a 20-year TIF term versus the normal 15-year TIF term. If a potential redevelopment site is not located within a CRA and there is a need for TIF, a formal request must be made to the Planning Department to request a CRA designation, prior to submitting a TIF application.
- Review examples and information on the city's website to understand if your project qualifies.
- Ensure property ownership or site control before applying.
- Contact city staff to discuss your potential project and learn about TIF requirements. (Note: You may need to assemble a development team with architects, engineers, contractors, attorneys, etc.)
- Submit a TIF application through Accela, including details on your project and development team.
- The application goes through a review process with economic development staff, the TIF committee, planning board, and ultimately city council approval over several months.
- If approved, the TIF agreement has a 15-20 year term for the increased tax revenues to pay back eligible project costs.
- For "entry level" projects under $500k, there is a streamlined micro-TIF program option.
- Note: good communication between the applicant and various city departments is key throughout the approval process.
Additional Resources:
Property Assessed Clean Energy (PACE)
What is PACE?
Property Assessed Clean Energy, or PACE, is a financing tool for commercial property owners to implement energy efficiency and water conservation projects. It allows owners to finance improvements over the lifespan of the installations, with loan payments made through special property assessments.
Why does this program exist?
- Enables long-term savings for property owners
- Promotes energy conservation as a public benefit
- Loan payments are typically less than the money saved from reduced energy costs
How do I apply?
- Determine if you have Eligible Properties:
- Commercial and Industrial properties
- New constructions or existing buildings undergoing substantial rehabilitation
- Residential developments are not eligible
- Meet Project Requirements:
- New buildings: Must provide energy savings beyond existing building code requirements
- Retrofit projects: Must improve upon energy consumption levels of systems being replaced
- Plan for Eligible Improvements:
- HVAC systems and controls
- Insulation and building envelope improvements
- Water conservation measures
- Renewable energy systems
- Efficient lighting and appliances
- And more (see full list for details)
How to Apply: For application details and process, interested property owners should contact the Economic Development Division of the Omaha City Planning Department.
Visit the PACE Program webpage to learn more.
Additionally, see PACE Program Manual or Brochure.