HB687 Alabama 2012 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Co-Sponsors

Jack WilliamsMary Sue McClurkin

Session

Regular Session 2012

Title

Ad valorem tax, fair market value, income tax credits not considered, Alabama housing tax credit allowed for projects after Jan. 1, 2013, equal to federal housing tax credit for low-income housing, Secs. 40-7-15, 40-7-62 am'd.; Sec. 40-8-62 added

Summary

HB687 would create an Alabama housing tax credit equal to the federal low-income housing credit and change property value rules to exclude tax credits from fair market value calculations.

What This Bill Does

It amends how fair market value is calculated for property taxes so income tax credits and restricted rents are not considered. It adds a new Alabama housing tax credit, equal to the federal housing tax credit, for qualifying low‑income housing projects located in Alabama, with rules on definitions, eligibility, and how the credit is claimed and recaptured. It also sets rules for credit carryforward, allocation among project owners, administrative authority, applicability, and repeal of conflicting laws; the credit is effective for tax years beginning after January 1, 2013.

Who It Affects

• Property owners and taxpayers subject to ad valorem taxes; the fair market value of property for tax purposes would be determined without counting any income tax credits, potentially changing tax bills.
• Developers/owners of qualifying low-income housing projects and Alabama taxpayers who claim the Alabama housing tax credit (and residents of such housing); they may receive a state tax credit equal to the federal credit, with recapture, carryforward, and allocation rules.

Key Provisions

• Amend 40-7-15 and 40-7-62 to exclude income tax credits and/or restricted rents from being considered in determining fair market value for ad valorem taxes.
• Create new Section 40-8-6 establishing the Alabama housing tax credit, equal to the federal housing tax credit, for qualified low-income housing projects in Alabama for credits claimed after January 1, 2013, with defined terms (Federal Housing Tax Credit, Median Income, Project, Qualified Project).
• Provide for state tax credit recapture if the federal credit is recaptured, with a proportional state recapture amount and requirements for amended returns showing recapture details; allow unused credits to be carried forward for three years and allocated among project owners as agreed.
• Authorize the Department of Revenue Commissioner to promulgate necessary rules, specify applicability, and repeal conflicting laws; set effective date of January 1, 2013 for tax years beginning after that date.

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