WASECA — The Waseca Historical Preservation Commission held a meeting on Monday about the Minnesota Rehabilitation Tax Credit related to Historic Downtowns.
This meeting was put on because the HPC has been working to get Waseca’s Downtown put on the National Register of Historic Places and are almost finished.
“The meeting was to let the public have a chance to sit in and hear what we’re doing again and ask questions,” Les Tlougan said.
Community members were able to learn about the HPC, tourism benefits, tax credits and more during the meeting.
Present at the meeting was tax credit expert, Natascha Wiener with Minnesota Department of Administration, State Historic Preservation office along with Ginny Way, who is a part of the same office, involved with the nomination process for being on the National Register of Historic Places.
The HPC focused on the tax credit that is available to those business owners who would be in the Historic Downtown area and how being on the registry is helpful to businesses.
The Minnesota Historic Structure Rehabilitation Tax Credit is administered by the National Park Service in partnership with the Internal Revenue Service. The tax credit program is set to expire after the 2021 fiscal year.
In order for a project or building to qualify for the tax credit it must be a certified historic structure along with numerous other requirements.
Building must be rehabilitated for income producing use, owner must apply for state credits before construction work begins, cost of rehabilitation must meet a substantial rehabilitation test, National Park Service must approve the project plans and certify the completed work as meeting the Secretary of the Interior’s Standards for Rehabilitation and taxpayer must be allowed the federal historic preservation tax incentive for project.
After the work is completed a Minnesota tax credit certificate or a grant-in-lieu-of-credit is issued. The income tax credit is refundable and transferable.
Taxpayers may choose a grant-in-lieu-of-credit equal to 90 percent of the allowable credit. This grant agreement are executed and payment is issued after the NPS certification of the completed project. The owner will be required to sign a Letter of Agreement Governing Use of the Historic property, assuming responsibility to maintain the historic property for five years.