Tax Incentives

Project Owner and Project Consultants of historic Berman Brothers Building, a State and Federal Tax Credit Project

Historic tax credits encourage the rehabilitation and re-use of historic buildings, creates jobs, are a cost-effective community revitalization measures, and support economic activity.

Redevelopment projects that reuse historic buildings, apply to the State and/or Federal historic tax incentive program(s), and meet the Secretary of the Interior’s Standards for Rehabilitation after completion may be eligible to access tax credits. (Note: projects must submit a complete State Part A application before construction begins to be eligible for the state credit.)

After applying, and throughout the extent of a Historic Tax Credit building project, the MN SHPO Tax Team works with property owners to help determine the best approach to meeting the Rehabilitation Standards and the project’s objectives. In general, rehabilitation work should retain and repair original historic features, craftsmanship, materials, character, and spaces.

Applicants are strongly encouraged to seek the advice of a qualified tax adviser with questions concerning specific tax consequences before starting a tax credit rehabilitation project. Owner-occupied residential properties do not qualify for the tax credits.

The State Historic Preservation Tax Credit program is administered by the MN SHPO in partnership with the Minnesota Department of Revenue while the federal historic preservation tax incentives program is administered by the National Park Service (NPS) in partnership with the Internal Revenue Service.

Learn more about the Federal Credits and the State Credits below.