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. Only income-producing properties are eligible for this incentive. This tax credit/ grant program is funded by the State of Minnesota; funds are awarded to eligible applicants who meet the program requirements and receive the approval of the Minnesota SHPO and National Park Service.
Federal Historic Rehabilitation Tax Credit–20%
Federal Agency: National Park Service, administered by the Minnesota State Historic Preservation Office (SHPO)
Recipients: Owners of commercial, industrial, agricultural, or rental residential properties
The Federal Government offers a variety of tax credits that assist preservation projects, notably a credit that is available only for rehabilitation of income-producing historic properties. Under this historic preservation tax credit, property owners who rehabilitate historic buildings for commercial, industrial, agricultural, or rental residential purposes can receive a tax credit equal to 20 percent of the rehabilitation costs. The National Park Service must certify that the rehabilitation work meets the Secretary of the Interior’s Standards for Rehabilitation.
Other Federal tax credits can also be used in preservation projects and can be combined with the historic preservation tax credit.
Contact: Catherine Sandlund, Preservation Specialist, Minnesota SHPO, firstname.lastname@example.org