Minnesota Historic Structure Rehabilitation Tax Credit

STATE ANNOUNCEMENTS

The 2023 State Legislature reinstated the Minnesota Historic Structure Rehabilitation Tax Credit.

Minnesota Part A: New/revised Minnesota Part A forms and instructions can be found here.

Minnesota Part B: For projects that received an Allocation Certificate during the sunset program, the existing Part B forms are still valid. The Minnesota Part B application, the Minnesota Part B Instructions, and the Part B supplemental materials are now available for use. MN SHPO recommends that applicants begin using the Part B forms immediately; however, the prior version will be accepted until September 25, 2023

NPS ANNOUNCEMENTS

The NPS has issued revised Historic Preservation Certification Application forms and instructions. The forms continue to be downloadable, fillable PDF forms and are dated "Rev. 6/2023." These forms supersede all previous versions. See NPS website for more information.

The forms accompany the announcement that as of August 15, 2023, all historic preservation certification applications must be submitted electronically, both new applications submitted to State Historic Preservation Offices (SHPOs) and materials submitted to the NPS in response to requests for additional information.

The Minnesota Historic Structure Rehabilitation Tax Credit offers a 20% state tax credit for qualified historic rehabilitations and parallels the existing federal rehabilitation tax credit. It also offers project investors an option of a grant in lieu of a credit, whichever option best suits a developer's tax situation. The program requires an application with the State Historic Preservation Office before project work begins.

The property must be a certified historic structure: A building listed in the National Register of Historic Places or certified as contributing to a Registered Historic District.
Owner must apply to the MN SHPO before construction work begins
The project must meet the "substantial rehabilitation test"
Project plans must be approved by National Park Service (NPS) and certified as meeting the Secretary of the Interior's Standards for Rehabilitation.
The completed work must be approved by NPS and allowed the federal tax credit.
The completed project must be income-producing.

Applicants are strongly encouraged to seek the advice of a qualified tax advisor with questions concerning specific tax consequences before proceeding with any tax credit rehabilitation project.

The Minnesota State Historic Preservation Office currently requires that all Historic Tax Credit Applications submissions are submitted electronically.

Please see Applications, Instructions, Tip-sheets, & FAQs for detailed information.