How Minnesota is Behind the Times When it Comes to Historic Tax Credits

If you look at the list of states that offer tax incentives for historic preservation you will quickly find that Minnesota is NOT on the list. With as many historic buildings in Minneapolis, St Paul, and the state itself, you would think we would be a state that cares about its history. After all, the Minnesota Historical Society is celebrating 150 years this year.

But unfortunately, protecting our historic past is not on the agenda of some politicians. Once again this year, a bill was introduced that would give property owners and developers some incentive to rehab old buildings, but it was sadly vetoed by the Governor. Homeowners must once again wait till next year to see if legislation can be passed. Here is some info about the proposed bill from the Minnesota Historical Society:

The Historic Preservation Tax Credit

A coalition of cities, historical groups, and property developers is actively promoting proposed legislation that would allow a credit on state income taxes equal to 25 percent of the qualified cost of a historic rehabilitation of residential or income- producing properties. The proposed legislation, similar to provisions in over 20 other states, would encourage private investment in historic properties in both urban and rural Minnesota, generating jobs and stimulating economic development.

The Historic Preservation Tax Credit was originally included in the House Omnibus Tax bill as a 20 percent credit (HF 2362.) A conference committee of House and Senate members included $3 million for historic preservation grants in the final tax bill (HF 2268) which passed the Legislature on May 21st. Governor Pawlenty vetoed the tax bill on May 30th, therefore the historic preservation grant program it included – as well as the proposed HPTC – will not become law this year.

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