4.0 HPSR 04-14-2005 - Laserfiche WebLink

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National Guard Armory, Duluth Waiting for rehab since the7970s, underutilized for over thirty years What is Eligible? The tax credit would be available for a property that is any of the following: • Listed on the National Register of Historic Places. (Minnesota has over 1,500 properties currently listed.) • Certified as a contributing element of a National Register Historic Distt7ct. • Certified as historic by local heritage preservation commission or ' ' Certified Local Government. Proposed- Legislation The proposed legislation, based on a highly successful Missouri law passed in 1997, provides an income tax credit for expenditures for historic structure rehabilitation. A taxpayer who incurs costs for the rehabilitation of an eligible property may take a credit against the tax imposed in an amount equal to 25 percent of the total costs of rehabilitation. The costs of rehabilitation must exceed 50 percent of the total basis in the property at the time the rehabilitation activity begins, and the rehabilitation must meet standards consistent with the standards of the Secretary of the Interior for re- habilitation as determined by the State Historic Preserva- tion Office of the Minnesota Historical Society. Bills have been introduced in the 2005-2006 Legislature (Senate File 1659 and House File 1731). Chief authors are Representative Morrie Lanning (R) in the House and Senator Larry Pogemiller (DFL) in the Senate.. In Missouri, annual economic impact of rehab tax credit - $1.016 billion - due to economic activity related to historic preservation. In Florida, $2 returned for every $1 invested and a 10-fold return for the Main Street program. In Virginia, over $316 million in rehabilitation. 24 other states, including Wisconsin, Iowa and North Dakota, have similar state tax credits. Why Should We Act Now? In the past 30 years, we have lost scores of historic buildings to dete- rioration and neglect because rehabilitation costs did not make them attractive to development. Many of them are in older residential neighborhoods, small-town main streets, and urban commercial cores. Reinvesting in these areas and spurring development will have a significant impact on their future health and vitality. Although the federal preservation tax credit provides incentives for ya~~ ,naNiroytyears rle Falls rehabilitation, most projects cannot be accomplishes using federal Rehabbed at,~2 Million in 1994 credits alone As a result, without a state credit, Minnesota receives lower federal tax credit per-capita than other states. Now is the time to augment the federal his- toric tax credit with a state credit that will encourage this redevelopment to occur before it is too late. Supporting Organizations City of Duluth Duluth Preservation Alliance National Trust for Historic Preservation City of Minneapolis Historic Saint Paul Preservation Alliance of Minnesota City of Saint Paul Minnesota Historical Society Twin Cities LISC Duluth Affordable Housing Coalition MN State Historic Preservation Office Wlute Bear Lake Area Historical Society Duluth LISC Minnesota Solutions Preservation Alliance of Minnesota • Will Stark, Advocacy Committee Chairman 516 Landmark Center • 75 W. Fifth St. • St. Paul, MN 55102 • Phone: 651.293.9047 www.mnpreservation.org • director@mnpreservation.org Fact Sources: State Historic Preservation Office of the Minnesota Historical Society Donovan Rypkema, Tlx Economic of Historic Pnrcrvation, 1994 Taylor & Weber, Historic Preservation Tae Credit S[udy, Humphrey Institute of Public Affairs, University of Minnesota, 2004 ~..~