A vote by the city Industrial Development Board on a new PILOT (payment in lieu of taxes) policy has been delayed for 90 days.
The policy sets a standard matrix for many PILOTs that would be approved by the IDB, but not go on to the City Council as they do currently.
The City Council would still review larger PILOTs.
Jermaine Freeman, the mayor's chief of staff, said more time is needed "to discuss the new policy with our community partners."
The IDB will consider the policy on Jan. 8.
If it is approved, then it goes on to the City Council.
Under the plan, PILOTs would be in order for projects adding at least 100 jobs. A manufacturing project would need to be at least $20 million and an office project $5 million.
The tax breaks would be 100 percent the first year, 75 percent the second year, 60 percent the third year and 50 percent for subsequent years.
The proposals would go to the IDB and require a public hearing. There would need to be an affidavit that the project would not go forward without the tax break.
Mr. Freeman said the plan "gives a clear, predictable path" for firms looking into a PILOT for their project. He said it would make Chattanooga more competitive with other cities on getting new developments.