Memphis Commission Approved New Tax Abatements

The Center City Revenue Finance Corp. authorized incentives for a residential project and a historic building renovation.

Updated on Oct. 13, 2026 in Construction

Isometric editorial illustration showing architectural steel beams resting on a brick foundation, representing city development incentives. — The Downtown Memphis Commission's Center City Revenue Finance Corp. has approved tax incentives for the Belle Mont residential complex and the Falls Building redevelopment. AI Illustration. Upload story photo >

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Do you support providing long-term tax abatements to private residential developers in your community?

The Downtown Memphis Commission's Center City Revenue Finance Corp. has approved tax abatements for two major development projects in the city. These incentives aim to support the Belle Mont residential complex and the redevelopment of the historic Falls Building.

Why it matters

Tax abatements like those approved in Memphis are commonly used by municipalities to encourage private investment in local development. These financial tools help developers offset costs for residential projects and historic building renovations that might otherwise be unfeasible.

The board approved a 10-year abatement for the second phase of the three-phase Belle Mont project and a 20-year incentive for the 11-story Falls Building at 22 N. Front St.

The players

Center City Revenue Finance Corp.

This is a commission under the Downtown Memphis Commission that manages and approves tax incentives for urban development projects.

KPS Development

This is a real estate development firm currently leading the construction of the multi-phase Belle Mont residential project.

The details

KPS Development is behind the Belle Mont residential project, which is currently underway near North Montgomery Street and North Bellevue Boulevard. Simultaneously, the 11-story Falls Building at 22 N. Front St. will undergo a significant residential redevelopment following the board's approval.

The tax abatements were approved by the Center City Revenue Finance Corp. on Tuesday, Oct. 13, 2026.

Market Landscape

These projects reflect a broader trend of leveraging the Tennessee Payment-in-Lieu-of-Taxes (PILOT) program to encourage urban density in Memphis. This strategy positions local developers to accelerate housing supply in competitive districts against rising construction costs.

Residents may see an increase in housing availability and the revitalization of historic properties in downtown areas as these projects move forward. Local taxpayers will see a temporary deferment of tax revenue from these specific sites in exchange for new residential capacity.

The takeaway

Developers often rely on long-term tax incentives to make large-scale urban residential projects financially viable for investors. These types of projects can contribute to downtown growth, though they alter the timeline of when local tax bases receive full property tax collections.