Valuation Incentive Program Defined What is it? VIP assists in the preservation of Nebraska's historic places. The program allows a property tax "preference" for a historic property that has been rehabilitated. The preference can be described as a temporary "hold" on increases in property tax assessment that result from improvements made to preserve a historic property. The Valuation Incentive Program (VIP) is a property tax incentive that assists in the preservation of Nebraska's historic buildings. What requirements must a property meet to be eligible for VIP? Eligible properties are those individually listed in the National Register of Historic Places or historic properties that contribute to a district listed in the National Register of Historic Places. The property must be designated as a "historically significant real property" before work on a project begins. A historically significant real property is one that is listed on the National Register of Historic places and is taxable. Under certain provisions, historic properties can be designated under a local government preservation ordinance. The historic property must be taxable, What sort of projects lead to eligibility? 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 State Historical Society. All work done to rehabilitate or improve the property must meet appropriate historic preservation standards. These standards are the Secretary of Interior's Standards for Rehabilitation. All work must be done during a two-year period. In certain circumstances this period may be extended with the approval of the Nebraska State Historical Society, such as when the size of the project is such that a good faith attempt to complete the rehabilitation in two years would not succeed or when it is economically unfeasible. Certain types of work are not eligible. These include landscaping, new construction, driveways and sidewalks. For owner-occupied single-family residences, no more than thirty percent of the dwelling space can be new construction outside the existing building. What happens to my taxes? A certified project in a qualifying historic property will result in the property's assessed valuation being frozen for eight years at its pre-rehabilitation value. The valuation then rises to its market level over a period of four years. Taxes must still be paid under the terms of this program. The property is not removed from the tax rolls. This is not a tax exemption. In certain cases, taxes may rise during the term that rehabilitation is in process. However, once the final certification is issued, the assessment will drop back to the base-year value and the "hold" will begin. Additional taxes paid due to a temporary assessment rise cannot be recouped.   More Information Download the VIP brochure (pdf) This brochure gives a more "in-depth" look at the program. Download a VIP application (word) Download the instructions for the VIP application (word) Please print off your finished application and send it by US Mail. We will not accept email versions of this form. Download the Secretary of the Interior's Standards for Rehabilitation (pdf)

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