Property Tax Increment Rebate Assistance

The Louisville Revitalization Commission (LRC) offers Property Tax Increment Rebate Assistance to support redevelopment and reinvestment projects within designated Urban Renewal Areas (URAs). Through this program, the LRC may provide a rebate of a portion of the incremental property tax revenues generated by a qualifying project to help offset eligible redevelopment costs. The program is intended to encourage projects that eliminate blight, stimulate economic activity, and provide meaningful public benefits that align with the City’s long-term revitalization goals.

The Property Tax Increment Rebate Assistance Program is a financial assistance tool authorized by the Louisville City Council and the Louisville Revitalization Commission (LRC). The program allows the LRC to rebate a percentage of the new property tax revenues generated by a redevelopment project within an Urban Renewal Area.

While urban renewal funding is generally intended to support public infrastructure improvements, the City and LRC may, on a case-by-case basis, provide direct assistance to private redevelopment projects that demonstrate exceptional public benefits and would not reasonably be feasible without financial support.

Eligible projects must:

• Support the goals and objectives of the applicable Urban Renewal Plan and City policies
• Help eliminate or prevent blight within the Urban Renewal Area
• Stimulate growth and reinvestment
• Enhance connections between the URA and surrounding areas
• Encourage complementary or mixed-use development
• Support business retention and economic vitality
• Improve streetscapes, circulation, parking, or public infrastructure
• Leverage public and private investment partnerships

Projects must also address at least three objectives identified in the Urban Renewal Plan.

Potential rebate assistance may include:

• Up to 50% of incremental property tax revenues for up to five (5) years
• Up to 90% of incremental property tax revenues for up to ten (10) years for projects providing extraordinary community benefits or significant tax generation

All assistance is subject to approval by the LRC and City Council and is evaluated on a project-by-project basis.

This program is intended for private property owners and development teams proposing redevelopment or improvement projects within an eligible Urban Renewal Area.

Applicants may be eligible if their project:

• Is located within the designated Urban Renewal Area
• Requires financial assistance to become economically feasible
• Will increase property values and tax revenues
• Provides measurable public and community benefits
• Supports Louisville’s revitalization, economic development, and design goals

The LRC gives special consideration to projects that:

• Generate additional sales tax or other tax revenue
• Include public gathering spaces or public art
• Provide affordable housing opportunities
• Improve transportation or parking infrastructure
• Restore or improve historic buildings
• Create strong positive impacts on surrounding properties and the broader community

For projects located in Downtown Louisville, consistency with the City’s historic preservation goals and policies will also be considered.

Applicants are strongly encouraged to schedule a pre-application meeting with City staff to discuss project eligibility, program requirements, and the proposed redevelopment concept before submitting an application.

The general application process includes:

1. Pre-Application Meeting
   Meet with staff to review program eligibility, Urban Renewal Plan objectives, and project expectations.
2. Submit an application
   Complete and submit the Application for Direct Assistance along with all required project information.
3. Obtain Required Land Use Approvals
   Applicants must secure all required City land use approvals before assistance can be approved.
4. Provide Financial Information
   Submit project proformas, development budgets, financing plans, bids, and other financial documentation necessary for evaluation.
5. Third-Party Financial Review
   Financial materials will be reviewed by an independent third-party consultant. Review costs are shared equally between the applicant and the LRC. If the project is completed, the applicant’s portion may be reimbursed upon issuance of a Certificate of Occupancy.
6. LRC Review Process
   The project will be reviewed by staff and presented to the Louisville Revitalization Commission at a public meeting for consideration.
7. Agreement Approval
   If approved, a Property Tax Increment Rebate Agreement will be developed and considered by the City Council and LRC prior to execution.
8. Project Completion and Rebate Payments
   Rebate payments are only made after project completion, issuance of a Certificate of Occupancy, and generation of increased property tax revenues attributable to the project.

All projects within the Urban Renewal Area must comply with the City’s Comprehensive Plan, zoning regulations, building codes, design standards, and any applicable site-specific requirements. The submission of an application does not guarantee funding or approval, and all assistance is awarded at the sole discretion of the LRC and City Council.