Valuation Incentive Program
This long-term saving plan freezes your assessed property evaluation (at the prehab value) for 8 years after you’ve rehabilitated your building. Your property taxes increase by 25-percent each year for 4 years after the initial 8 years. Your county will assess your building at its full value after 12 years. Also, the freeze will remain in place if the property changes ownership.
- Your property must be listed on the National Register of Historic Places either individually or as contributing to a historic district. Buildings locally landmarked by a Certified Local Government, also qualify.
- Your property must be taxable.
- The cost of the rehabilitation must be 25-percent or greater of the “base-year” assessed value of the property. The base-year is the last assessed value of the property at the time an application is submitted to the Nebraska Historic Preservation Office.
- A Part 2 application describing the proposed work must be submitted before work begins. Failure to do so will result in a denial.
- All work must be completed during a 2-year period (exceptions can be made when the size of the project is such that a good faith attempt to complete rehabilitation in 2 years is not possible).
- All work on the interior and exterior of the property will be reviewed.
- If a property is within the twelve year valuation period, it cannot apply for the VIP. A new application may be submitted once the twelve year period has lapsed.
- Income producing properties and/or owner occupied single family residences are eligible for the VIP program.
- A farmstead can potentially apply for the VIP. However, the freeze only applies to the farmstead and not the agricultural land.
Before You Apply
Applicants should consult with an accounting or tax professional prior to applying for the VIP in order to determine if participation in the program will result in a benefit to the applicant. In addition, applicants are encouraged to consult early and often with the NeSHPO in the planning stages of the project in order to learn and understand the historic preservation standards utilized in the evaluation of applications.
Please read the VIP instruction thoroughly before starting the application process. If you have any questions, please consult with the NeSHPO.
Please understand that the application for the VIP is a three-part process. All three parts will need to be completed for the application to be considered finished. Each part of the application is listed and detailed below.
Part 1 — Historically Significant Real Property
The VIP Part 1 application determines the subject property as a “historically significant real property” for the purposes of the VIP program. All applicants must fill out a Part 1 application, including those properties individually listed on the National Register of Historic Places. The Part 1 application can be submitted simultaneously with the Part 2 application. Please refer to the VIP instructions for additional required materials needed for the Part 1 application.
Part 2 — Preliminary Certification of Rehabilitation
Prior to commencing work, a person shall submit a Part 2 application. If work commences before the submittal of a Part 2, the project is ineligible for the VIP program. The Part 2 determines if the proposed rehabilitation will meet the Secretary of the Interior’s Standards, and will thus qualify for the Valuation Incentive Program. The existing conditions of the property and all proposed work to the interior and exterior of the subject property must be described in this application.
A certification from the county assessor stating the assessed valuation of the property that was last certified by the county assessor or as finally determined if appealed. This will be the base valuation that will be used over the course of eight years starting the calendar year after the project is completed and approved. The valuation, signature, and date must be signed in wet ink by the assessor. Please refer to the VIP instructions for additional required materials needed for the Part 2 application.
Part 3 — Final Certification of Rehabilitation
The VIP Part 3 application determines if all the completed work on the subject property conforms to the Secretary of the Interior’s Standards. Once the Part 3 is approved, a copy of the approval will be transmitted to the county assessor. The following calendar year after approval, the assessed valuation documented in the Part 2 application, shall be the base year valuation for the taxation of the property for eight years after the issuance of the final certificate of rehabilitation. Please refer to the VIP instructions for additional required materials needed for the Part 3 application.
After the project is complete, all subsequent work within a 12-year period must comply with the Secretary of Interior’s Standards and be approved by the NeSHPO. If any work is to occur after the completion of the project, please contact the NeSHPO.
If you have any questions regarding the VIP program and application process, please contact the NeSHPO.
Tax Credit Coordinator
Nebraska State Historic Preservation Office