On March 30, the Minnesota Legislature passed a jobs stimulus bill which, includes a historic tax credit. This provision will assist with job creation statewide in the construction sector. The bill provides for a tax credit of 20% of qualified rehabilitation costs for income producing properties.

Please take a minute to write a message thanking the Governor, your legislators, and the House and Senate Tax Committee Chairs for their support for this important provision.

• February 4, 2010

The Historic Preservation Tax Credit is included in the proposed Construction Industry Stimulus Bill (SF 2167) authored by Senator James Metzen. SF2167 received its first hearing in the Senate Business, Industry and Jobs Committee. The bill includes a 25% income tax credit on qualified rehabilitation expenditures for both income-producing and homeowner projects.

In the House of Representatives, House Taxes Committee Chair Representative Ann Lenczewski introduced House File (H.F.) 2695 on February 4. This comprehensive jobs bill includes the rehab tax credit and mirrors the federal version of this provision. Therefore, it would be available as a 20% rehabilitation tax credit for National Register-listed properties that are income producing.

For more information please follow the Preservation Alliance of Minnesota’s updates page.

Background

A coalition of historic preservation advocates, local history organizations, local governments and developers have been actively promoting legislation that would allow a credit on state income taxes equal to 25 percent of the qualified cost of a historic rehabilitation of residential or income-producing properties. The proposed legislation is similar to an existing federal tax credit and provisions in over 30 other states. It would encourage private investment in historic properties in both urban and rural Minnesota, generating jobs and stimulating economic development.

In recent legislative sessions this coalition has advocated for the passage of the Historic Preservation Tax Credit but it has failed to pass. Given the economic climate this proposal is more important than ever since it help to create much needed construction jobs, while helping to preserve the identity of communities statewide.

 

Total MHS Appropriation, as approved by the Legislature - $13,757,000
Line-item vetoed by Governor - $9,357,000 (Kelley Farm)

A. Projects Approved by Governor:

• Historic Sites Asset Preservation $3,400,000

For capital improvements and betterments at state historic sites, buildings, landscaping at historic buildings, exhibits, markers, and monuments, to be spent in accordance with Minnesota Statutes, section 16B.307. The Society shall determine project priorities as appropriate based on need.

• County and Local Preservation Grants $1,000,000

To be allocated to county and local jurisdictions as matching money for historic
preservation projects of a capital nature, as provided in Minnesota Statutes, section 138.0525.
$150,000 is for a grant to the city of South St. Paul to renovate the historically significant 1941 Navy Hangar at 310 Airport Road at Fleming Field in the city to meet life safety and building code requirements, subject to Minnesota Statutes, section 16A.695. No local match is required for this grant.

B. Oliver Kelley Farm Historic Site Revitalization Project - Line Item Vetoed by Governor

During the 2010 legislative session, the Minnesota Historical Society proposed a $9.857 million remodeling and expansion of the Oliver Kelley Farm’s facilities to better meet the educational needs of the state’s schoolchildren and citizens. The proposal was supported by both the Minnesota House and Senate and funding of $9,357,000 was included in the recent 2010 bonding bill. However, the Kelley Farm proposal was line-item vetoed by Governor Pawlenty, along with 55 other projects totaling over $300 million.

For more information on the project see a recent article in the History Matters newsletter

TAKE ACTION! Please write to your Legislator and the Governor, thanking them for their support of the Society’s capital budget request.

In the current biennium, the State of Minnesota faces a nearly $1 billion deficit in its operating budget. The Minnesota Legislature is taking steps to address the shortfall through a series of budget bills.

On March 29, the Legislature passed the first of the budget balancing bills. This bill includes a budget reduction for the Minnesota Historical Society of $700,000 for the biennium which ends June 30, 2011. (This reduction is split into the following for each fiscal year: $210,000 for FY10; $490,000 for FY11). The Society's management and its governing board will develop a budget to meet this reduction in the coming weeks.

On January 15, the Society released its first report to the Legislature and Governor on activities carried out with support from the Arts and Cultural Heritage Fund in this first year of the Fund’s existence. Due to the short amount of time since the passage of the first legacy appropriation bill, we consider this first report to be an interim or progress report. Society staff members have dedicated many, many hours to planning and implementing educational programs, grants and partnerships to deliver Minnesota history across the state, at the History Center, at historic sites and via the latest forms of technology.

Background

During the 2008 legislative session, the Outdoor and Cultural Legacy Bill was approved and placed on the November general election ballot. The constitutional amendment asked Minnesota voters to increase the state sales tax by 3/8ths of a percent and dedicate the revenue to the outdoors and cultural heritage.

In the final language of the bill, it was decided that 19.75% of the additional sales tax revenue would be dedicated to the arts and cultural heritage, which would include funding for Minnesota history. At current estimates, there could be close to $50 million of additional revenue available to be used for the preservation and enhancement of state history, culture, and arts.

With the constitutional question passing on the support of over 56% of all Minnesota voters, it was very clear that citizens supported the purpose and intent of the Legacy Amendment.
In order for future generations to enjoy Minnesota's rich history and cultural heritage we need to invest today.

 

• Historic Fort Snelling is the state's first National Historic Landmark, designated by the federal government in 1960, and one of just 23 in Minnesota. The federal government stipulated that it be maintained as a historic site when it transferred ownership to the State of Minnesota.

• The land that encompasses Historic Fort Snelling is owned by the State of Minnesota. The Minnesota Historical Society administers the historic site as directed by statute as part of the state historic sites network (Minnesota Statutes, Chapter 138.661-662). The State owns the historic site as well as Fort Snelling State Park, the Upper Post and the Fort Snelling Memorial Chapel. The Department of Natural Resources manages the state park, the Upper Post and the adjacent athletic fields. The chapel is managed by the Fort Snelling Memorial Chapel Foundation. The National Cemetery is owned by the federal government and administered by the Department of Veterans Affairs.

• Historic Fort Snelling is a reconstruction and restoration of the original fort, which began construction in 1820 and was completed in 1825. The reconstruction began in 1965, based on archaeological investigation. The fort includes the following original structures: the round tower, commandant's house, south battery and officers' quarters.

• The State of Minnesota has invested in ongoing repair and restoration of buildings at Historic Fort Snelling, which serves the general public and thousands of the state's schoolchildren. Over the past four years, with funding appropriated by the State Legislature and Governor, the historic fort's utilities have been updated, the long barracks renovated, front gate and gate house reconstructed, roofs repaired and porches constructed, along with other work necessary to maintain this National Historic Landmark. Several structures at Historic Fort Snelling remain in need of restoration.

• The Society's 2010 capital budget request to the State Legislature of $6.7 million for historic sites building preservation includes $1.7 million to continue repair work on 10 buildings at Historic Fort Snelling. The request also includes historic preservation work at other sites, including the Mille Lacs Indian Museum, Mill City Museum, the Forest History Center, Fort Ridgely and Split Rock Lighthouse. Work currently underway at Historic Fort Snelling is being done with previously appropriated funds.

• In 2008, the Minnesota Historical Society requested $24.8 million to construct a new visitor center at Historic Fort Snelling. This project was not funded and will not be pursued in the future. The Society is exploring other options to continue to better serve the nearly 100,000 visitors the historic site receives annually.

• The Society is currently expanding its interpretation of Historic Fort Snelling to include stories from many time periods and from the diverse perspectives of the many people associated with the area. It includes sharing the history and culture of the Dakota people, the U.S.-Dakota War of 1862 and the internment camp located along the river flats below the fort, the history of Dred Scott and slavery as related to the fort, the history of the fort as a processing center for the military during World War II, and many other stories.

 

The Minnesota Historical Society seeks to serve the people of Minnesota with the help of a generous appropriation from the Legislature and the Governor. As a leading historic and cultural institution in Minnesota, adequate funding to the Society provides a significant and lasting investment for all Minnesotans. Costing less than $5 per citizen annually, the interpretive impact of the Society’s activities can be seen statewide from educational programming for students and teachers, collections, public programs, and historic sites.

1. Now is the time to take action to support history! Contact the following people and thank them for supporting history:

• Governor Tim Pawlenty
• Your legislator
• Members of the House and Senate Capital Investment committees.

Thank you for your efforts!

2. Become a Member

3. Purchase "History Matters" Products

4. Learn about the Issues The Minnesota Historical Society tracks issues that impact history around Minnesota.

5. Subscribe to the History Matters e-newsletter so that you are aware of the latest news at the Legislature regarding the Minnesota Historical Society.

6. Visit the Minnesota Historical Society's 25 Historic Sites and Museums. Take some time to visit your place in history.

7. Educate your friends and family about why history matters to you. Encourage them to get involved in the Society.

8. Make a Donation

9. Volunteer at the Minnesota Historical Society. Volunteering is a great way to meet people who share your love of history and to have fun!

*Making an Appointment with your Legislator
1. The first step is to identify your state legislators. All you need is your address. Search for your legislator. A quick click on your legislators' names will provide you the appropriate contact information.

2. Now that you have your legislators' phone numbers, simply call and speak to one of their friendly staff members to schedule a visit. Appointments are typically set in 15-minute time slots.

3. Not sure what to say when you arrive at your meeting? Read Tips for Meeting with Legislators.