Thousands of new jobs expected under 2010 tax credit

by Megan Nicolai

Minnesota’s Historic Rehabilitation Tax Credit, passed into law by former governor Tim Pawlenty in 2010, will create thousands of jobs during upcoming construction projects, according to Finance and Commerce.

A report released Monday by the University of Minnesota Extension and the Minnesota State Historic Preservation Office said that from the fourteen construction projects meeting the tax credit requirements at the end of June, 1,808 new construction jobs will be created.

The report is the first issued by the office, which will be required to submit new analysis to Minnesota’s Legislature annually.

That number jumps to 2,948 created jobs when indirect and induced hiring is included.

Approximately $343 million will be spent on the fourteen projects, and future workers will be paid $83.7 million, according to the report.

Total economic impact is expected to reach $451 million.

But the renovation projects won’t be approved or receive the tax credit construction is complete.

To qualify for the credit, the proposed building must be a certified historic structure, and the restoration project must pass a “substantial rehabilitation test,” according to the report.

Of the 14 projects, six are located in Hennepin County, and include the rehab of the Riverside Plaza apartment complex, along with two other apartment construction projects in Downtown Minneapolis.