Minnesota Historic Structure Rehabilitation Tax Credit
State Tax Incentives
The Minnesota State Historic Preservation Office currently requires that all Historic Tax Credit Applications submissions are submitted electronically. Please see the submission instructions for detailed information.
On May 23, 2022, the Minnesota State Legislature adjourned without passing an extension for the Minnesota Historic Structure Rehabilitation Tax Credit. The program has sunset. SHPO is no longer accepting state Part A applications for the program.
In-progress projects that were issued an allocation certificate prior to sunset, must complete construction and place their project in service three calendar years from the allocation certificate’s issuance date. SHPO’s authority to issue Credit Certificates will sunset after December 31, 2025.
The federal program is NOT due to sunset and SHPO will continue to process federal applications in partnership with the National Park Service.
Frequently Asked Questions and Sunset 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, in order to maximize the efficiency of the public dollars assisting the project. 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 on the National Register of Historic Places or certified as contributing to a Registered Historic District.
- Owner must submit an application to the 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.
Legislation passed during the 2019 Minnesota legislative session amends the state tax code to conform with federal tax code changes made on December 23rd, 2017 (Minnesota Session Law 2019, 1st Special Session, Chapter 6). One of the programs impacted by these changes is M.S. 290.0681, the Minnesota Historic Structure Rehabilitation State Tax Credit (Historic State Tax Credit) . The primary changes to the Minnesota Historic State Tax Credit is that the credits must now be claimed over a 5-year period, rather than as a single pay-out. Review the amended language here . Projects should contact their tax professional to discuss how this specifically affects their project.
Applications and Instructions
Economic Impact Analysis Reports
Contact: Natascha Wiener, Historical Architect