Historic Structure Rehabilitation Credit

To qualify, all of these must be true:

• You made qualified improvements to a historic property in Minnesota
• The improvements you made qualify for the federal Historic Rehabilitation Credit
• You applied for certification to the Minnesota State Historic Preservation Office (SHPO) before starting the project (visit the SHPO website for application details)
• SHPO issued a credit certificate when you completed the project

The credit is available for projects that SHPO certifies before July 1, 2021. You will claim this credit in the year the renovated building is placed in service.

For details about the federal rehabilitation credit:

• Go to the Historic Preservation Tax Incentives on the National Park Service website
• Review the instructions for federal Form 3468 on the IRS website

Your credit amount generally equals your federal credit amount. You may take the credit against your income tax, corporate franchise tax, or insurance tax.

The credit is payable in equal installments over five years, beginning in the year the building was placed in service. The five-year payout is effective for applications for allocation certificates submitted to SHPO after December 31, 2017.

Include the credit certificate you received from SHPO when you file your return.

Individual Income Tax

• For tax years 2018 and later, complete Schedule M1REF, Refundable Credits.
• For tax years prior to 2018, complete Schedule M1B, Business and Investment Credits.

Corporate Franchise Tax, Insurance Premium Tax, and Unrelated Business Income Tax (UBIT)

• If you received this credit through a partnership, S corporation, estate, or trust, you will receive your share of the credit on Schedule KPC, KPI, KS, or KF. Include a copy of that schedule when you file your return.
• Enter the National Park Service (NPS) project number from the credit certificate you received from SHPO. If you submitted the initial application for allocation certificate to SHPO:
  • On or before December 31, 2017: Use the credit amount shown on the credit certificate.
  • After December 31, 2017: Use 20% of the credit amount shown on the credit certificate.

Fiduciary Income Tax

• Include credits eligible outright by an estate or trust or received on Schedules KPI, KS, or KF as a partner, shareholder, or beneficiary of another entity.
• Include only the portion of the credits that the estate or trust is retaining. Report any portion of the credits being distributed to beneficiaries on the beneficiaries’ Schedules KF.