The Minnesota Historic Structure Rehabilitation State Tax Credit Is Set to Expire—Again
The 2021 Minnesota Legislature renewed the powerful development tool for only a year
By Chris Hudson | March 24, 2022
Illustration by @drawnwell.
SPOTLIGHT
Last March, ENTER highlighted the looming expiration of the Minnesota Historic Structure Rehabilitation State Tax Credit with an overview of the program and its eye-opening economic impact across the state. State legislators did indeed renew the tax credit in 2021, but only for a year. The original legislation was enacted in 2010 and extended in 2013 until 2021.
With expiration looming once again, we share the math from Rethos and RevitalizeMN:
Since its launch, the tax credit has generated $5 billion in economic activity and created 28,480 jobs, and use of the federal and state tax credits has created or retained 6,000 housing units in the state.
Every dollar of tax credit has generated $9.50 or more in economic activity.
The return on investment in Greater Minnesota is $16 for every $1 of tax credit invested.
“The current bill proposes an eight-year extension, which is critical to the success of the program,” says Brian Stephenson, vice president of Alta Via, a RevitalizeMN partner. “Developers, communities, and local governments all need time to assess and plan around these complex projects. A shorter renewal actively undercuts the real impact the tax credit can make.”
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