Saint Paul — An annual report for the Minnesota State Historic Preservation Office, (SHPO,) finds that a state tax credit for rehabbing historic structures generated $715 million in economic activity within Minnesota in fiscal year 2018. It also found that the credit leveraged a 9.5-to-1 ratio of public to private sector investment, and helped stimulate 3,630 full-time equivalent jobs during the period.

The Minnesota Historic Rehabilitation Tax Credit was signed into law in 2010 to stimulate job growth, increase local tax bases, and revitalize communities throughout the state. It provides a tax credit of up to 20 percent of qualifying expenses for historic properties that also qualify for a similar federal historic tax credit.

Of the $715 million in economic activity, $393.4 million was in direct construction activity, which in turn generated $321.8 million of activity in other state industries, including wholesale trade, owner-occupied housing, and real estate.

The new jobs provided an estimated $235.3 million in labor income, both in direct employment and in jobs provided by subcontractors and suppliers.

Tax credits claimed in FY 2018 came to $75.3 million. With a total economic impact of $715 million, every dollar invested in the credit generated $9.50 of economic activity.

Since the credit went into effect in FY 2011, 119 projects have been approved, generating $3 billion in economic activity - including nearly a billion dollars of labor income, and supporting 16,557 jobs for the state.

“The Minnesota Historic Rehabilitation Tax Credit is an unqualified success,” said Minnesota Department of Administration Commissioner Matt Massman, in his role as State Historic Preservation Officer. “The credit is a critical job engine for our state, while preserving and reusing significant pieces of our state’s heritage for the interest and enjoyment of future generations.” 

Some projects completed under the tax credit program includes the Kirch-Latsch Building in Winona, the Maass and McAndrew Building in Rochester, the O’Donnell Shoe Company in Saint Paul, and the Holden Building in Minneapolis’ Warehouse District, and the LaSalle Apartments in Virginia.

Information about the Minnesota Historic Rehabilitation Tax Credit can be found on the State Historic Preservation Office’s website at www.mn.gov/admin/shpo/incentives/state/ . The analysis was completed by the University of Minnesota’s Extension Center for Community Vitality with contributions from SHPO staff, and can be found online at https://bit.ly/2RD0mwi.