Senate Majority Leader Dave Senjem introduces bill to extend state tax credit sunset

On Wednesday, February 15, 2012, Minnesota Senate Majority Leader Dave Senjem (R-Rochester) introduced S.F. 1881, a bill to extend the sunset of the Minnesota Historic Rehabilitation Tax Credit (HRTC). The bill proposes extending the existing HRTC sunset from 2015 to 2021. This bill is an important first step toward ensuring that the HRTC continues its success as a catalyst for job creation and economic development through historic preservation. Currently, there is no House of Representatives companion bill, which is necessary for the legislation to move through the committee and public hearing process to eventual passage.

 

Background

The Minnesota Historic Rehabilitation Tax Credit Program (HRTC) was established by the State of Minnesota in 2010 through the Jobs Stimulus Bill. Read the HRTC law in 2011 Minnesota Statute, section 290.0681. The program is an incentive to catalyze job creation in the construction industry, and community economic development, through the restoration and adaptive reuse of historic properties. Minnesota was the 31st state in the nation to enact a HRTC program after 11 years of advocacy by the Preservation Alliance of Minnesota and the Minnesota Historical Society with dozens of other partners, including the Building Jobs Coalition.

 

It’s Working!

The Minnesota State Historic Preservation Office (SHPO) released its first economic impact report on the HRTC in November, 2011.  What did it demonstrate?  The HRTC is working to stimulate preservation construction and create jobs. Revitalizing communities, stimulating job growth and increasing the tax base are the goals of the Minnesota Historic Rehabilitation Tax Credit. The report shows historic preservation catalyzed through the HRTC is a bright spot in an otherwise challenging economic landscape. The first 14 HRTC project are creating almost 3,000 direct, indirect, and induced jobs and is returning $9.20 to the State of Minnesota for every $1 spent on the program.

 

What you can do to support extending the HRTC sunset

S.F. 1881 has been referred to the Senate Taxes Committee chaired by Senator Julianne Ortman (R-Chanhassen). A hearing on the bill has yet to be scheduled. Your State Senator needs to hear from you to make them aware of S.F. 1881 and how this extension of the sunset is vital to continuing to stimulate jobs and stimulate private investment in our irreplaceable historic places. If your State Senator sits on the Senate Taxes Committee, please call and ask him/her to request a hearing on S.F. 1881 and to support its passage. Direct him/her to the Economic Impact Report to see the results created from catalyzing private investment or provide him/her with one of our three fact sheets about the basics of the program, jobs created, and economic development results.

 

Your legislator is just a few clicks away.   It’s easy to contact your legislator through the Minnesota Historical Society’s Cap Wiz web site; click here to access your legislator’s contact information.

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