HB509 Alabama 2014 Session

Summary

Primary Sponsor

Paul DeMarco

Republican

Session

Regular Session 2014

Title

Historic structures, Historical Commission, approval of tax credits for restoration further provided for, transfer of credits, amount of total credits, Act 2013-241, 2013 Reg. Sess, am'd.; Secs. 40-9F-3, 40-9F-4, 40-9F-5 am'd.

Summary

HB509 clarifies and broadens Alabama's historic rehabilitation tax credits by making them calendar-year awards, loosening ownership rules, and allowing credits to be transferred.

What This Bill Does

The bill specifies that tax credits are awarded on a calendar-year basis and sets rules for how credits are reserved and issued. It removes most restrictions on changing the ownership of the applicant, allowing changes as long as at least 50% of ownership remains (with foreclosure or bankruptcy exceptions). It allows tax credits to be transferred between owners and transferees through a formal process, including transfer forms and fees, and requires new certificates for transfers. It also details credit amounts, caps, pass-through rules, recapture liability on the original owner, and post-rehabilitation ad valorem tax reassessment by local taxing authorities.

Who It Affects

• Property owners/applicants undertaking substantial rehabilitation of qualified historic structures, who gain clarified calendar-year credit awards and more flexible ownership rules.
• Tax credit transferees/investors and other entities that receive or pass through credits, who gain the ability to transfer credits and use them against state taxes under specified procedures.

Key Provisions

• Credits are awarded on a calendar-year basis; reservations are made in order of complete applications, with a lottery for same-day submissions and ownership criteria that allow changes while maintaining at least 50% ongoing ownership (with foreclosure/bankruptcy exceptions).
• Credit amounts: 25% of qualified rehabilitation expenditures for certified historic structures and 10% for qualified pre-1936 non-historic structures; caps include $5,000,000 for most types and $50,000 for certified historic residential structures; aggregate and annual reservation caps apply with specific multi-year limits.
• Credits are transferable and assignable; transfer processes require a transfer statement, transfer agreements, and fees; transferees may use credits against state taxes and may transfer credits to others under defined rules; documentation is required for each transfer.
• Recapture and post-rehabilitation effects: only the original owner is liable for recapture; after rehabilitation, local taxing authorities must reassess ad valorem taxes based on a provided appraisal and cost certifications; a CPA cost certification is required for large expenditures and an independent MAI appraisal is required for the structure.

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