New Housing Construction Tax Abatement
(Citywide URA)

The Ames City Council recently approved on April 23, 2024 a Citywide Urban Revitalization Area designation in support of incentives for new ownership housing construction. This new program provides partial property tax abatement for construction of new residential dwellings for qualified owner occupied properties. The program allows for up to $500,000 of improvement value for owner occupied dwellings to be eligible for a five-year partial tax abatement schedule. There is a 3.5 year time period of eligibility with the requirements for improvements to be completed after April 26, 2024 and for a building permit to be issued prior to December 31, 2027.  Applications must be filed by February 1st of the year the improvement value is assessed. Please review the Application Packet for more detailed information.

Five Year Schedule for Partial Property Tax Abatement:

• Year 1 - 100%
• Year 2 - 80%
• Year 3 - 60%
• Year 4 - 40%
• Year 5 - 20%

Citywide Urban Revitalization Tax Abatement Plan