Synopsis:

Minnesota has moved one step closer to establishing a historic-preservation tax credit (25 percent income tax credit) for developments in the state. As part of the “construction stimulus” bill, lawmakers hope to incentivize developers to rehabilitate current buildings rather than start from scratch. With the intention of preserving historic buildings, this credit also helps to support sustainable construction through the reuse of buildings. Another provision would allow municipalities to create special assessments to pay for energy-conservation projects in existing buildings, or to issue revenue bonds for qualifying “green” construction projects. The bill also includes a “small-business investment credit” which could be used for an adaptive reuse project meant to rehab a building as a business incubator. Bonnie McDonald, executive director of the Preservation Alliance of Minnesota, has suggested that the historic-preservation tax credit could create 1,500 jobs per year.