Economic impact of projects leveraged by the Minnesota Historic Rehabilitation Tax Credit: fiscal year 2018
Key findings for communities
During the fiscal year 2018, the Minnesota Historic Rehabilitation Tax Credit had the following impacts:
- Output: The total estimated economic impact of the tax credit was $715.2 million, of which $393.4 million came directly from construction activity. That construction activity then generated $321.8 million from other Minnesota industries.
- Employment: The tax credit supported an estimated 3,630 full-time equivalent (FTE) jobs in the state.
- Labor income: The tax credit generated an estimated $235.2 million in labor income.
- Tax credit: Given a total impact of $715.2 million of activity, each dollar of the Minnesota Historic Rehabilitation Tax Credit generates $9.50 of economic activity in the state.
About this report
In April 2010, the Minnesota Historic Rehabilitation Tax Credit was signed into law. The goal of the credit is to stimulate job growth, increase local tax bases, and revitalize communities across the state. It allows either a state income tax credit or a grant in lieu of the credit. A state income tax credit up to 20 percent of qualifying expenses is available if a property meets eligibility requirements. Alternatively, a grant in lieu of the credit (equal to 90 percent of allowable credit) is available to property owners. The Federal Historic Preservation Tax Incentives Program also provides a federal historic tax credit.
Each year, the State Historic Preservation Office contracts with Extension to determine the economic impact of the state historic tax credit. This report quantifies the results of the tax credit for fiscal year 2018 and summarizes its total impact during eight years of the program. It also features six case studies, which highlight completed projects and their impact on economic activity and property values.
Since the state historic tax credit became available in 2011, 119 projects have received initial approval. These projects have generated an estimated $3.0 billion of economic activity in the state. This includes $993.5 million in labor income (dollar figures are adjusted to 2018 dollars). The state historic tax credit has supported 16,557 jobs.
Reviewed in 2018