from our colleagues at the Preservation Alliance of Minnesota:
Governor Tim Pawlenty recently signed into law the Minnesota Jobs Stimulus Bill, a diverse array of tax incentives to stimulate job growth in Minnesota. The bill is estimated to create between 12,000 and 20,000 jobs across the state.
A significant feature of the bill is the State Historic Rehabilitation Tax Credit, an incentive to stimulate green job growth, increase local tax base, and revitalize urban and main street communities through reinvestment in historic properties. This provision is estimated to create between 1,500 and 3,000 construction jobs annually if Minnesota is consistent with other state programs.
Minnesota’s state historic preservation tax credit will allow a state income tax credit equal to 20 percent of the cost of rehabilitating a qualifying historic property. The program mirrors the federal rehabilitation tax credit, a provision that has been in place since 1976. Projects are eligible to claim the state credit if they are allowed the federal credit, a program which requires properties to be listed in the National Register of Historic Preservation to qualify. Minnesota currently has 1,600 listings in the National Register representing almost 7,000 individual properties. Projects must be income-producing to use the credit, therefore, homesteaded residential projects are not eligible. Our law also creates innovation in the tax credit market by allowing a developer to choose either a certificated, refundable credit or a grant, which will stimulate nonprofit use of the incentive, and also can be used against the insurance premium tax widening the investor pool.
More info on the Proposed New Jersey historic rehab tax credit here>>