Minnesota Historic Structure Rehabilitation Tax Credit
State Tax Incentives
The Minnesota Historic Structure Rehabilitation State Tax Credit (Sec. 290.0681) is set to expire on June 30, 2022. The State Historic Preservation Office (SHPO) will have the authority to issue allocation certificates until June 30, 2022. This sunset is for the STATE tax credit only and DOES NOT apply to the Federal Tax Credit.
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