HB62 Alabama 2016 Session

Summary

Primary Sponsor

Victor Gaston

Republican

Session

Regular Session 2016

Title

Taxation, tax credits for rehabilitation of qualified structures, credits extended until 2022, Secs.40-9F-4, 40-9F-7 am'd.

Summary

HB62 extends Alabama's rehabilitation tax credit for substantial rehabilitation of qualified structures by seven years and updates rules on eligibility, amounts, transferability, and administration.

What This Bill Does

It extends the tax credit for seven years and keeps the main structure intact for certified historic structures at 25 percent and for qualified pre 1936 non historic structures at 10 percent, with per property caps of 5 million dollars and 50 thousand dollars for historic residential structures. The full credit may be claimed in the year the rehabilitation is placed in service, and any unused portion can be carried forward up to 10 years. Credits can be transferred or assigned through a formal process, with a transfer fee per transferee, and transferees may use the credits to offset state taxes; partnerships and LLCs pass through credits to their owners. The bill also sets eligibility timing and protections for allocations reserved before a cut off date and makes the act effective for tax years beginning on or after January 1 2016, with a special post date requirement noted as May 15 2016 2023 for new applications.

Who It Affects

• Owners of historic structures or qualified pre 1936 non historic structures who undertake substantial rehabilitation and may qualify for the tax credit, subject to the stated rate, caps, and claiming rules.
• Owners in partnerships, LLCs, or other multi owner arrangements, since credits pass through to individual owners and can be transferred or assigned to others through a formal process.

Key Provisions

• Seven-year extension of the tax credit for substantial rehabilitation of qualified structures (amends 40-9F-4 and 40-9F-7).
• Credit rates and caps: 25 percent for certified historic structures, 10 percent for qualified pre-1936 non historic structures; caps of 5 million dollars per property type and 50 thousand dollars for certified historic residential structures.
• Claiming and carry-forward: full credit can be claimed in the year placed in service; unused credits may be carried forward up to 10 years; credits are transferable and assignable with a formal process and fees; transferees may offset state tax and pass-through rules apply for partnerships.
• Eligibility timing and protections: no new applications after May 15 2016 2023 for credits; allocations reserved before that date remain protected; effective for tax years beginning on or after January 1 2016.

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