Minnesota’s Historic Tax Credit which was hanging in the balance until just recently, has now been fully funded and extended through June 30, 2022.
According to the Revitalize MN coalition, with Gov. Tim Walz signing off on the 2021 Omnibus Taxes bill, the extension of the historic tax credit ensures infrastructure investment across the state, along with saving historic buildings from decay and destruction. A prime example locally is the former Fergus Falls Regional Treatment Center (RTC), a Kirkbride designed building.
Fergus Falls City Council member Scott Kvamme said it will be a good financial tool, for not just the former RTC but other projects as well.
“I am happy to learn that Minnesota’s Historic Tax Credit was included in the 2021 Omnibus Tax bill. As we look forward to the redevelopment of the RTC and the Red River Mill, it is encouraging to know that this financial tool will remain available to potential developers,” Kvamme said.
It was announced earlier this year that the Red River Mill in downtown Fergus Falls would be repurposed for housing. At the time, Otter Tail County Historical Society Executive Director Chris Schuelke said that the historic tax credit is a financial incentive for developers of historic buildings to redevelop or reuse the properties.
With the historic tax credit, there is up to a 20% federal tax credit that is in place already, and currently Minnesota matches that, and does another 20% for qualifying projects.
According to the grassroots organization Revitalize MN, since 2011, the tax credit has created 18,650 jobs and generated $3.5 billion for the state, while preserving the historic structures that define communities. The tax credit preserves historic buildings while rehabilitating them for the 21st century needs of Minnesota.