Historic Preservation Tax Credit Programs

Hopkins Mainstreet between 8^th and 11^th Avenues is listed on the National Register of Historic Places. Property owners of contributing historic buildings are eligible to apply for tax credits. 

Federal Historic Tax Credit

One of the ways the federal government encourages the preservation of historic buildings is through federal tax laws that benefit qualifying historic preservation projects. A project may qualify for a 20-percent investment tax credit if:

• It involves rehabilitation of a certified historic building used for income-producing purposes;
• the rehabilitation work follows the Secretary of the Interior's Standards for Rehabilitation; and
• the project receives preliminary and final approval from the National Park Service.

Property owners, developers and architects must apply for the tax credit through the Minnesota State Historic Preservation Office (SHPO) and are encouraged to work with SHPO staff to ensure that appropriate rehabilitation measures are followed. The SHPO then passes its recommendations on to the National Park Service (NPS) for approval. Learn more about the Federal Historic Tax Credit on the SHPO website. 

Minnesota Historic Tax Credit

The Minnesota Historic Structure Rehabilitation Tax Credit offers a 20% state tax credit for qualified historic rehabilitations and parallels the existing federal rehabilitation tax credit. It also offers project investors an option of a grant in lieu of a credit, whichever option best suits a developer's tax situation. The program requires an application with the State Historic Preservation Office before project work begins.

• The property must be a certified historic structure: A building listed in the National Register of Historic Places or certified as contributing to a Registered Historic District.
• The owner must apply to the MN SHPO before construction work begins.
• The project must meet the "substantial rehabilitation test."
• Project plans must be approved by National Park Service (NPS) and certified as meeting the Secretary of the Interior's Standards for Rehabilitation.
• The completed work must be approved by NPS and allowed the federal tax credit.
• The completed project must be income-producing.

Applicants are strongly encouraged to seek the advice of a qualified tax advisor with questions concerning specific tax consequences before proceeding with any tax credit rehabilitation project. Learn more about the Minnesota Historic Tax Credit on the SHPO website.