The Preservation Alliance of Minnesota Urges Us to Take Action to Save the Historic Tax Credit

Via a November 2 e-newsletter from the Preservation Alliance of Minnesota:

The Historic Tax Credit was not included in the Tax Cuts and Jobs Act, the long-expected tax reform bill introduced today in the U.S. House of Representatives. This credit, which has been a permanent part of the tax code since President Ronald Reagan signed it into law in 1986, has created millions of jobs and rehabilitated tens of thousands of heritage buildings.

The retention of the Federal Historic Tax Credit is vitally important to Minnesotans because our state historic tax credit, which was passed with bipartisan support in 2010, is tied to use of the Federal credit. We need the Federal Historic Tax Credit to help sustain our robust local construction sector and to continue the efforts to reinvest in established communities across Minnesota.

In Minnesota alone, qualifying historic rehabilitation projects have generated $2 billion (yes, BILLION) in economic activity over the past six years, provided 12,000 jobs, and produced almost $680 million in labor income. The Federal historic tax credit returns $1.25 to the U.S. Treasury for every $1 in credit allowed, while in Minnesota almost $8 in economic activity is generated for every $1 of the state tax credit allowed.

The Conley-Maass-Downs Building in downtown Rochester was successfully rehabilitated using both Federal and state historic tax credits. The building now houses a restaurant and a collaborative work center, and received a Minnesota Preservation Award in 2017. Photo courtesy of CMD Holdings.

The House of Representatives is expected to work on amending the Tax Cuts and Jobs Act beginning next Monday, Nov. 6, and their goal is to have it finalized by Thanksgiving. Please join PAM in advocating for this credit by contacting your U.S. Representative and letting him or her know how important the historic tax credit is to Minnesota’s economy. U.S. Rep. Erik Paulsen (District 3, west metro suburbs) is a member of the House Ways and Means Committee; it is especially important that Congressman Paulsen hears from his constituents who support the Historic Tax Credit. At the same time, please urge Senators Klobuchar and Franklin to include the Historic Tax Credit in the Senate Tax Reform bill. Click here for contact information for all of Minnesota’s Representatives and Senators.

Not sure what to say? Here’s a sheet with key talking points from a national perspective.

Or read more about the Historic Tax Credit on the National Trust for Historic Preservation’s website. (Hint: you might recognize the two featured examples!) This link also includes a compelling video of President Reagan presenting his reasons for signing the original 1986 historic tax credit legislation.

Or, contact us directly and we’ll help you draft your message! Call 651.293.9047 or e-mail Erin Hanafin Berg, PAM’s Director of Outreach and Policy.

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