Bill lowers micro‑TIF age requirement; proponents say it helps small developers

Summary

LB 11 14 would change the age requirement for expedited tax increment financing projects from 60 years to 25 years, enabling smaller developers to use micro‑TIF to renovate buildings and add workforce housing; supporters said it reduces barriers for rural and small cities, while senators discussed annexation and preservation safeguards.

Sen. Terrell McKinney presented LB 11 14, which would change eligibility for expedited tax increment financing (micro‑TIF) by reducing the requirement that a structure be within corporate limits for 60 years to 25 years. McKinney said the change would allow municipalities to productively use expedited TIF for redevelopment without waiting multiple generations.

Sue Crawford (City of York/Economic Development) and other proponents described micro‑TIF as a one‑page, low‑lawyer process that has allowed small local developers to renovate and create workforce housing in small cities. Crawford gave an example of a young couple wanting to convert a one‑story motel into housing that was excluded under the 60‑year rule but could qualify under a reduced age requirement.

Committee members discussed annexation risks and whether lowering the threshold could encourage opportunistic annexations. League representatives said 25 years was a compromise after attorney review but were open to other numbers; some senators suggested smaller thresholds or further discussion. The committee did not vote on the measure and invited additional drafting conversations.