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A press conference, a Senate hearing—a great start for the State Historic Rehabilitation Tax Credit in 2010!

Palace Hotel

The Palace Hotel in Crookston was a fitting candidate for use of a proposed State Historic Rehabilitation Tax Credit. Without allocation of federal and state rehab and low-income housing credits, we will likely lose this 10 Most Endangered property.  Photo by Doug Ohman, Pioneer Photography.

Monday, February 8, 2010

It’s been a media blitz today for the proposed state rehabilitation tax credit. The credit is included in the proposed Construction Industry Stimulus Bill (Senate File (S.F.) 2167) authored by Senator James Metzen (DFL—So. St. Paul).  Senator Metzen convened a press conference at 9:30 a.m. today at the State Capitol to introduce the bill’s features and answer media questions regarding its benefits.  Alliance executive director Bonnie McDonald was asked to speak on behalf of the rehab tax credit and its inclusion as part of the Building Jobs Coalition’s proposal.  McDonald explained that the state rehabilitation tax credit will create an estimated 1,500 construction jobs annually based on figures from some of the 30 other states in the nation that have this incentive.  Click here to view KSTP-TV coverage of the press conference; click here to listen to Minnesota Public Radio’s audio coverage.  The following links will take you to the Pioneer Press and Duluth News Tribune coverage that reference the historic preservation tax credit.

At 12:30 p.m., SF2167 received its first hearing in the Senate Business, Industry and Jobs Committee.   Senator Metzen asked McDonald to testify on the state rehabilitation tax credit provision and further detail how it will create jobs for Minnesota.  The current bill includes a 25% income tax credit on qualified rehabilitation expenditures for both income-producing and homeowner projects.  The Alliance will post the Committee video, or a transcript, from the hearing when it is made available.  The Business, Industry and Jobs Committee has referred S.F. 2167 to Senator Ann Rest’s State and Local Government Oversight and Operations Committee.

In the House of Representatives, House Taxes Committee Chair Representative Ann Lenczewski (DFL—Bloomington) introduced House File (H.F.) 2695 on February 4.  This comprehensive jobs bill includes the rehab tax credit and mirrors the federal version of this provision.  Therefore, it would be available as a 20% rehabilitation tax credit for National Register-listed properties that are income producing.

Watch our website, Facebook page, and your inbox for more information as the legislation moves forward.

Did you know??? As a more labor-intensive practice, preservation creates 5.7 more jobs per $1 million in output than manufacturing and two more per million than new construction. We estimate that the Minnesota rehab credit will create approximately 1,500 jobs per year as the program ramps up.

For more information, check out this fact sheet on Minnesota’s proposed state rehabilitation tax credit, or read background information about the state tax credit proposal.