Economic Impact of State Historic Tax Credits

The University of Minnesota recently undertook a study to determine the economic impact of the Minnesota Historic Rehabilitation Tax Credit.  Passed in April 2010, the Minnesota Historic Rehabilitation Tax Credit provides to eligible property owners a state income tax credit of up to 20%of qualifying rehabilitation expenses or a grant in lieu of the credit.  This legislation is aimed at promoting private investment in historic properties with the ultimate goals improving job growth, increasing the tax base and revitalizing communities.

Like many other state historic rehabilitation tax credits, to be eligible for the Minnesota Historic Rehabilitation Tax Credit, the property must be a certified historic structure, listed on the National Register of Historic Places or certified as contributing to a registered historic district.  Furthermore, the building must be rehabilitated for an income producing use and the project must meet a substantial rehabilitation test. All work on the property must meet the Secretary of Interior’s Standards for Rehabilitation and the completed work approved by the National Park Service and the Minnesota State Historic Preservation Office.

As of June 30, 2011, 14 projects have received approval for the Minnesota Historic Rehabilitation Tax Credit. A total of $343 million have been spent on these projects leading to 2,948 total jobs.

A copy of the study can be found at the following link:

University of Minnesota Study