Key findings
For projects submitted in fiscal year 2022:
- Developers filed 15 applications for new projects. More than half (eight) are in Greater Minnesota.
- Project developers plan to spend $209.9 million on their rehabilitation efforts.
- Including the ripple effects, the projects will generate an estimated $349.8 million of economic activity in Minnesota.
- This includes $95.9 million in labor income, primarily going to Minnesota workers and their families.
- The fiscal year 2022 tax credit will support an estimated 1,250 jobs.
- For every dollar of state tax credit awarded, the projects will generate $9.90 in economic activity.
- Construction projects generate tax revenues as they are completed. State and local tax collections from the construction phase alone will repay slightly more than a third of the tax credits awarded in fiscal year 2022.
For projects completed during the periods of fiscal years 2011 to 2022 :
- Projects included in this report have generated $5.9 billion in economic activity since fiscal year 2011. The credit has supported 29,570 jobs, paying $2.2 billion in labor income.
- A mapping project shows that approximately half of the projects in Minneapolis, Saint Paul, and Duluth are in socially vulnerable neighborhoods.
About this report
To encourage historic preservation, the Minnesota state legislature enacted the Minnesota Historic Rehabilitation Tax Credit in 2010. The State Historic Preservation Office (SHPO) and the Minnesota Department of Revenue jointly administered the credit. During the 2022 legislative session, the credit program was allowed to expire and sunsetted on June 30, 2022.
SHPO partners annually with University of Minnesota Extension to analyze the impact of the credit. This report is a summary of the analysis for the Fiscal Year 2022 (FY22), which covers the period from July 1, 2021 to June 30, 2022. The analysis focuses on the impact of the state credit.
Related reports: Minnesota Historic Rehabilitation Tax Credit
Reviewed in 2023