Information technology (IT) is increasingly presented as a driving force for service and efficiency improvement in local governments. However, achieving these goals in creating value from IT investments is a significant challenge for local government organizations. Practitioners and researchers have proposed numerous approaches to IT benefits management, but our knowledge of current practices and capabilities in local government IT management is still limited. Thus, in this paper we present an investigation of what characterizes IT benefits management in local government in order to understand and improve current practices. Through a comparative case study of two Danish municipalities, we have analyzed the different characteristics of benefits management. Based on this analysis we propose an initial framework for understanding IT benefits management in local government.