HB274 Alabama 2014 Session

Summary

Primary Sponsor

Victor Gaston

Republican

Co-Sponsors

Steve McMillanAdline ClarkeDarrio Melton

Session

Regular Session 2014

Title

Taxation, transfer of tax credit for rehabilitation, income tax credits for rehabilitation of historic structures, Act 2013-241, 2013 Reg. Sess., am'd; Secs. 40-9F-2, 40-9F-4 am'd.

Summary

HB274 would allow Alabama historic rehabilitation tax credits to be transferred or assigned to other taxpayers, not just claimed by the original owner.

What This Bill Does

The bill amends the historic rehabilitation tax credit law to make the credit transferable and assignable. It defines key terms (like certified historic structure and qualified rehabilitation expenditures) and sets the credit rates (25% for certified historic structures and 10% for certain pre-1936 non-historic structures) with annual caps. It allows credits to be passed through to partners in partnerships, and makes credits freely transferable and re-assignable to other taxpayers, including nonprofits, while permitting unused credits to be carried forward for up to 10 years. Credits claimed in the year the rehabilitation is placed in service, with no refunds, and there are limits on total credits reserved by the commission.

Who It Affects

• Property owners or taxpayers who rehabilitate historic structures (including certified historic residential structures) would be able to monetize and transfer their tax credits, potentially using or selling them to others.
• Investors and other entities (such as partnerships, LLCs, and nonprofit recipients) that own, acquire, or receive credits would be able to hold, allocate, or further transfer credits to offset their taxes or to other parties.

Key Provisions

• Credit transferability: All or any portion of the tax credits under this act shall be freely transferable and assignable, subject to notice and verification requirements.
• Definitions: The bill adds detailed definitions for certified historic structure, certified rehabilitation, certified historic residential structure, owner, qualified rehabilitation expenditures, qualified structure, and other related terms.
• Credit rates and caps: 25 percent of qualified rehabilitation expenditures for certified historic structures and 10 percent for qualified pre-1936 non-historic structures; per-category and overall caps include $5,000,000 per tax year for most properties and $50,000 for certified historic residential structures, plus specific residency caps.
• Pass-through and allocation: Credits granted to partnerships or multi-owner properties pass through to partners/members pro rata or as agreed, and transferees may offset taxes or transfer credits to others.
• Reservation and use: The aggregate amount of credits that may be reserved in a tax year has specified caps ($20,000,000 or $30,000,000 plus rescinded reservations) with unused credits eligible for use in later years.
• Repeal: Section 7 of Act 2013-241 is repealed as part of the amendments.
• Effective date: The act becomes effective on the first day of the third month after its passage and approval.

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