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2/4/2022 11:20:45 AM
SAINT PAUL – An annual report for the Minnesota State Historic Preservation Office (SHPO) finds that a state tax credit for rehabbing historic structures will generate $1.4 billion in economic activity within Minnesota from projects approved in fiscal year 2021, supporting 9,660 jobs statewide. The new jobs will provide an estimated $693.4 million in labor income, both in direct employment and in work provided by subcontractors and suppliers.
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. Additional benefits include efficient use of resources, improved neighborhoods and assets, and innovative use of existing places.
A tax credit of up to 20 percent is provided on qualifying expenses for historic properties that also qualify for a similar federal historic tax credit. Minnesota's historic tax credit law is set to expire June 30, 2022; however, the Federal Rehabilitation Tax Credit will continue. There was a record number of 34 applications filed by developers in FY2021, and every dollar awarded generated $11.30 of economic activity.
For the past ten years, historic tax credit projects have generated an estimated $5.0 billion in economic activity in Minnesota. The credit has supported 28,480 jobs and $1.9 billion in labor income. A mapping project showed 53 percent of projects located in Minneapolis, Saint Paul, and Duluth are within socially vulnerable neighborhoods.
An analysis of tax collections for three completed projects throughout Minnesota shows that for $3.7 million in awarded credits, 66 percent is returned to state and local governments in tax collections upon project completion, and within eight years, tax collections exceeded the credits awarded.
More information about the Minnesota Historic Rehabilitation Tax Credit and the latest report can be found on the State Historic Preservation Office’s website at mn.gov/admin/shpo/incentives/state/. The analysis was completed by the University of Minnesota’s Extension Center for Community Vitality.
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For additional information, contact:
Assistant Commissioner Curt Yoakum at (651) 201-2771 or curtis.yoakum@state.mn.us
