SB404 Alabama 2014 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

Republican

Session

Regular Session 2014

Title

Taxation, allow tax credits to transfer, awarded on a calendar year basis, Act 2013-241, 2013 Reg. Sess, am'd.; Secs. 40-9F-3, 40-9F-4, 40-9F-5 am'd.

Summary

SB404 would allow Alabama's historic rehabilitation tax credits to be transferable, clarify calendar-year award timing, and permit changes in the applicant's ownership.

What This Bill Does

If enacted, the tax credits would be awarded in a calendar year and could be transferred between owners or to other parties. The bill allows ownership changes in the project while keeping certain ownership continuity requirements, and establishes a system to track all transfers. It preserves the existing credit amounts and caps, requires rehabilitation and reporting, and makes the initial owner responsible for any recapture. Some provisions are retroactively effective to May 15, 2013, with other provisions applying to later tax periods as noted.

Who It Affects

• Property owners or applicants seeking historic rehabilitation tax credits and their partners/investors, who may change ownership structures and transfer credits while meeting continuity requirements.
• Taxpayers claiming the credits and any transferees of the credits, who may use the credits against Alabama taxes or pass them along to others, with credits tracked by the commission and initial owners liable for recapture if applicable.

Key Provisions

• Credits, including all or any portion, shall be freely transferable and assignable; transfers must be filed with the commission within 30 days and a tracking system will certify ownership and transfers.
• Credits are awarded on a calendar year basis; amendments clarify how and when awards are issued and applied.
• Ownership changes are allowed if at least 50 percent of the ownership remains the same among direct owners, with restrictions applicable before rehabilitation begins and exceptions for foreclosure or bankruptcy scenarios upon proper documentation.
• Credit amounts and caps: 25 percent of qualified expenditures for certified historic structures and 10 percent for qualified pre-1936 non-historic structures, with per-project and per-type dollar caps and a 10-year carryforward for unused credits.
• Reservation and review process: priority-based reservations with a lottery for equal submissions, 90 days to issue reservations, and requirements to commence rehabilitation within 18 months and spend at least 20 percent of estimated costs to start.
• Recapture liability rests with the initial owner; ad valorem tax assessments may be updated to reflect rehabilitation after completion.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation