HB214 Alabama 2015 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Victor Gaston
Republican
Session: Regular Session 2015
Title: Taxation, tax credits for rehabilitation of qualified structures, credits extended until 2022, Secs.40-9F-4, 40-9F-7 am'd.
Summary: HB214 extends Alabama's historic rehabilitation tax credits for seven more years and expands how credits can be used, carried forward, and transferred.
What This Bill Does
The bill adds a seven-year extension to the tax credits for substantial rehabilitation of qualified structures. It keeps the credit amounts at 25% for certified historic structures and 10% for qualified pre-1936 non-historic structures, with caps of $5,000,000 per year (and $50,000 for certified historic residential structures). The full credit can be claimed in the year the rehab is placed in service, with unused credits carried forward (no refunds if credits exceed the tax liability). It also permits transfer and sale of credits, outlines a process and fees for transfers, and requires annual reporting on credits issued. Additionally, it sets annual and total reservation limits for credits, and restricts new credits for applicants after May 15, 2016/2023, while preserving prior reservations.

Who It Affects
Owners and taxpayers who rehabilitate historic or pre-1936 non-historic structures and seek to claim the tax credit, subject to the 25%/10% rates, annual cap, and carry-forward rules.
Investors, partners, LLCs, and other entities that hold or receive transferred tax credits, as credits can be transferred/sold and then used by the transferee to offset state taxes (with associated transfer forms, fees, and reporting requirements).

Key Provisions
Extends the tax credit for substantial rehabilitation of qualified structures by seven years, amending Sections 40-9F-4 and 40-9F-7.
Maintains credit rates and caps: 25% of qualified rehabilitation expenditures for certified historic structures; 10% for qualified pre-1936 non-historic structures; per-property caps of $5,000,000 (and $50,000 for certified historic residential structures).
Credit must be claimed in the year the rehabilitation is placed in service; no refund if credits exceed tax liability; unused credits can be carried forward for additional years; requires annual reporting to the House Ways and Means Education Committee.
Implements transferability: credits can be transferred or assigned once, with a transfer fee and transfer forms; transferees can use the credits to offset state taxes; requires documentation and department rules to verify ownership.
Pass-through treatment: credits granted to partnerships or LLCs pass through to partners/members; allocations must be documented on the credit certificate.
Reservation and overall cap rules: annual reservation limits and aggregate caps (including a $20,000,000 annual limit from 2013-2022 and a $60,000,000 total reserved cap for 2013-2016), with allowances for unreserved credits to be used later.
New application restriction: credits not available to owners who submit applications after May 15, 2016/2023; protections for prior reserved allocations.
Effective date: applies to tax years beginning January 1, 2016, and becomes effective immediately upon passage.

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