During fiscal year 2021, the Minnesota Historic Rehabilitation Tax Credit had the following impacts:
- Developers filed 34 applications, a record high for the program. This is largely a result of the planned sunsetting of the program.
- Project developers reported planned spending of $890 million to complete their projects.
- Including ripple effects, the projects will generate an estimated $1.4 billion of economic activity in the state and $693.4 million in labor income. The credit will support 9,660 jobs.
- Every dollar of tax credit created $11.30 of economic activity in the state.
- Construction of the projects will repay 50 percent of the credit cost immediately upon completion through increased state and local tax collections.
Major findings for projects in progress between fiscal years 2011 and 2021:
- The projects have generated an estimated $5.0 billion in economic activity in the state. The credit has supported 28,485 jobs and $1.9 billion in labor income.
- A mapping project showed 53 percent of projects located in Minneapolis, Saint Paul, and Duluth are in socially vulnerable neighborhoods.
- A comparison to a brownfield (new construction) project showed that both projects received nearly an identical amount of federal, state, and local funding. The brownfield project, however, was more expensive per unit than the historic tax credit project.
About this report
In 2010, the Minnesota legislature enacted the Minnesota Historic Rehabilitation Tax Credit, which parallels an existing federal tax credit. The credit supports historic preservation efforts in the state. In addition to stimulating economic activity, historic preservation benefits people by providing a sense of place and continuity, efficiently using resources, preserving craftsmanship, improving aging neighborhoods and assets, and encouraging creative new uses of existing spaces. The credit was set to sunset after fiscal year 2021, but received a one-year extension during the 2021 legislative session.
Each year, the State Historic Preservation Office partners with Extension to measure the economic impact of projects leveraged with the credit. This report presents the results for fiscal year 2021 (FY21), which covers the period of June 30, 2020 to July 2, 2021. Its focus is on the state credit.
Summary of findings since 2011
Reviewed in 2022