This bill modifies the state historic structure rehabilitation credit and grant statute to allow for further transfer of credits or grants by the original recipient.

Section 1 references the definitions of “placed in service” and “qualified rehabilitation expenditures” to their meaning given in section 47 of the Internal Revenue Code.  For purposes of the Minnesota credit in this bill, “Federal credit” is defined as 20 percent of the qualified rehabilitation expenditures with respect to any certified historic structure for a taxable year.

Section 2 provides for a decision of the State Historic Preservation Office of the Minnesota Historical Society regarding the transfer of a credit or grant to be challenged as a contested case under the state administrative procedure statutes.

Section 3, paragraph (a), adds language to authorize the recipient of a historic structure rehabilitation credit certificate to assign the certificate in whole or in part to one or more transferee taxpayers.  The transferee is then treated as the owner of the certificate.  The original recipient must notify the Commissioner of Revenue of the assignment, which is only valid upon such notification.  A credit certificate may not be assigned to other taxpayers more than three times without the commissioner’s consent. 

Paragraph (b) adds language to authorize the recipient of a historic structure rehabilitation grant to assign the grant to another individual or entity, who is then treated as the owner of the grant.  The original grant recipient must notify the Commissioner of Revenue of the assignment, which is only valid upon such notification.  A grant may not be assigned to an individual or entity more than three times without the consent of the Historic Preservation Office.

Section 4 adds language to allow credits granted to corporate entities to be passed through to partners, members, shareholders, or owners of a corporate entity according to any executed agreement between relevant parties. 

This bill is effective the day following final enactment and is retroactive to taxable years 2010 for certified historic structures placed in service after May 1, 2010.

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