Role of state historic tax credits in addressing local economic development goals

In Minnesota, historic preservation efforts leveraged by state historic tax credits have been used to achieve local economic development goals. This analysis explores how developers used three approaches to turn historic buildings into housing. The approaches include 1) leveraging private investment, 2) developing private-public partnerships, and 3) creating community partnerships. Using a mixed methods approach, the analysis lends insight into the role of public versus private investment in historic preservation. It provides an overview of federal historic tax credits and reviews the structure of state historic tax credits. From there, it contains a summary of eight projects in Minnesota that transformed underutilized historic properties into housing, including a history of the building, a description of the rehabilitation project, and the project’s economic contribution. Finally, it explores the implications for communities desiring to utilize historic tax credits to address community economic development goals.