Former Omaha mayor and current mayoral candidate Hal Daub announced a tax credit proposal Monday to provide tax breaks for home improvements.

"My purpose here today is to advance an idea that I believe will have tangible, positive impact on homeowners." Daub unveiled what he calls a local stimulus package.

“Homeowners making qualifying improvements to their property like an addition, a new roof or installing a new driveway would be eligible for a 10-percent tax credit spread out over five years."

Daub said his plan would boost the local construction economy, improve neighborhoods and eventually create higher tax levies as valuations rise. Homeowners would receive a $300 tax cut for five years on a $15,000 improvement.

It's a plan Daub believes will stimulate the economy and increase tax revenues as home valuations rise. “You create payroll with lumber being bought, paint going on walls, new roofs. This would not include putting in swimming pools, there would be a certain set of home improvements."

The proposal will require state legislation with an "opt-in" plan for counties across the state. The precise details could change as it proceeds through the legislative process.

"For many years, we have offered these types of incentives to businesses through various methods, including Tax Increment Financing," said Daub. "It's time we offer a similar incentive to homeowners."

Daub also announced his intention to make restoring the city's AAA bond rating a priority for his administration. To accomplish that, Daub plans to negotiate with all city unions regarding pensions and other issues, like spiking. He would also like to begin building the city's cash reserves.

This comes on the same day Omaha City Councilman Jim Vokal officially entered the mayoral race. He filed his paperwork at the Douglas County Election Commissioner's Office Monday afternoon.

"I think the governor probably has something to say about the decline in revenue that he would see under this plan,” said Vokal regarding Daub's proposal.

Vokal said unfunded mandates aren't the answer for struggling homeowners. "I don't disagree with that, but we've got to do something that's realistic and we can pay for."

Mayoral candidate Jim Suttle is at a conference in Washington, D.C. through Wednesday, representing the Metro Area Planning Association.

In a phone interview, he told Channel 6 News Daub's plan would not go into effect until spring 2010 and that it doesn't provide enough immediate help. He said the new mayor needs to focus on job creation now.

Since the new federal stimulus plan puts "trillions of dollars back in the game,” Suttle said capital improvement initiatives need to be started immediately to create jobs funded with stimulus money. He said that money needs to be attained quickly for city projects.

Vokal added that voters need to analyze each candidate's plans. "For their transparency, our ability to afford them and make sure that we are not just throwing out things that may stick on the wall without the ability to pay for them."