HB271 Alabama 2012 Session

Summary

Primary Sponsor

Jim CarnsRepresentative

Republican

Co-Sponsors

Terri CollinsK.L. BrownRod ScottElaine BeechJohn W. RogersMary Sue McClurkinRichard J. LairdAllen TreadawayGreg WrenLynn GreerApril WeaverBarry MooreDavid SessionsJuandalynn GivanBill PooleDaniel H. BomanWayne JohnsonJim PattersonKen JohnsonKurt WallaceWes LongPhil WilliamsHoward SanderfordDuwayne BridgesMerika ColemanMary MooreJames E. BuskeyThomas JacksonAlan HarperMike MillicanYvonne KennedyOliver RobinsonDemetrius C. NewtonPatricia ToddRandy DavisMike HillBarry MaskSteve ClouseRandy WoodJamie IsonChad FincherDickie DrakeJack WilliamsMike BallVictor GastonLaura Hall

Session

Regular Session 2012

Title

Taxation, state income tax credit relating to Class 1, 2, 3 municipalities for rehabilitation of historic structures

Summary

HB271 creates a state income tax credit for rehabilitating historic structures in designated downtown or historic districts within Class 1–3 municipalities.

What This Bill Does

It provides a tax credit against Alabama income tax for qualified rehabilitation expenditures: 25% for certified historic structures and 10% for qualified pre-1936 non-historic structures, with per-property caps of $3,000,000 for income-producing properties and $50,000 for historic homes. Credits are allocated by the Alabama Historical Commission, require pre-approval of a rehabilitation plan, and are transferable but nonrefundable against tax liabilities (unused credits can be carried forward up to 10 years). The program has annual caps of $25,000,000 for income-producing properties and $5,000,000 for historic homes, and involves adjustments to property assessments and ongoing reporting to the Legislature. Administration is shared between the Alabama Historical Commission and the Department of Revenue, with rules, fees, and effectiveness beginning with the 2013 tax year.

Who It Affects

• Property owners or developers who rehabilitate certified historic structures or qualified pre-1936 nonhistoric structures located in downtown core, central business district, or registered historic districts in Class 1–3 municipalities; they would be eligible for substantial state income tax credits if they obtain certification and complete qualifying rehabilitation.
• Taxpayers (individuals or businesses) filing Alabama state income taxes who hold or receive these credits; they can apply credits against their tax liability, transfer/assign credits to others, and carry unused credits forward up to 10 years (subject to overall program caps and rules).

Key Provisions

• Applies only to downtown core areas, central business districts, or registered historic districts in Class 1, Class 2, or Class 3 municipalities.
• Defines terms: Alabama Certified Historic Structure, Alabama Certified Rehabilitation, Downtown Core Area, Registered Historic District, Qualified Rehabilitation Expenditure, Substantial Rehabilitation, and Alabama Historic Home.
• Credit amounts: 25% of qualified rehabilitation expenditures for certified historic structures and 10% for qualified pre-1936 non-historic structures; per-property credit caps of $3,000,000 for income-producing properties and $50,000 for historic homes.
• Credits are transferable and assignable; nonrefundable against tax liability if insufficient tax, with unused credits carryable for up to 10 years; annual overall credits caps of $25,000,000 for income-producing properties and $5,000,000 for historic homes.
• Administration and process: owner must submit a rehabilitation plan and estimate before work; Commission reserves credits; completion requires certificate of completed work and appraisal documentation; Department of Revenue applies credits against tax and may audit.
• Project standards: rehabilitation must meet standards to preserve historic character; approvals and reservations follow a priority/order system managed by the Commission.
• Basis and recapture: tax basis reductions and any recapture provisions follow the Internal Revenue Code; notices to ad valorem taxing authorities upon certification to trigger reassessment.
• Fees: the Commission may charge up to 1% of qualified rehabilitation expenditures, not to exceed $10,000 per application.
• Reporting: the Commission, in consultation with the Department, must report to the Legislature in the third year after passage and annually thereafter on activity and impact.
• Effective date: tax year beginning January 1, 2013, continuing thereafter.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation