SB230 Alabama 2016 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

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

SB230 would extend the tax credit for substantial rehabilitation of qualified structures by seven years and update related rules for claiming, carrying forward, and transferring the credit.

What This Bill Does

It lengthens the period to use the credit for rehabilitating historic and pre-1936 non-historic structures. The credit remains 25% for certified historic structures and 10% for certified pre-1936 non-historic structures, with caps of $5,000,000 overall (and $50,000 for historic residential structures); the entire credit can be claimed in the year placed in service, with unused credits carried forward up to 10 years. It also allows credits to be transferred or assigned (including through partnerships or multiple owners), with a formal transfer process and a $1,000 fee per transferee, and sets annual and total reservation caps for credits; new applicants after a specified date would not be eligible for credits.

Who It Affects

• Owners or taxpayers rehabilitating qualified structures (historic or pre-1936 non-historic) who would be eligible to claim a 25% or 10% tax credit, subject to the stated caps and carryforward rules.
• Partnerships, LLCs, and other entities with multiple owners, and any buyers/receivers of transferred credits, who can pass through credits to owners or transfer and use credits to offset state taxes under the new transfer rules.

Key Provisions

• Seven-year extension of the tax credit for substantial rehabilitation of qualified structures.
• Credit percentages: 25% for certified historic structures; 10% for certified pre-1936 non-historic structures; caps of $5,000,000 per year for all types except historic residential ($50,000 for historic residential).
• Credit claiming: entire credit may be claimed in the year rehabilitation is placed in service; no refund if credits exceed tax liability; unused credit may be carried forward for up to 10 years.
• Reservation and caps: for calendar years 2013-2022, total credits reserved cannot exceed $20,000,000 per year plus rescinded credits; overall reserved amount cannot exceed $60,000,000 during May 15, 2013 through May 16, 2016.
• Transferability: credits may be transferred/assigned to partners, members, or owners; only the transferee can use the transferred credit; a formal transfer process with notices, transfer certificates, and a $1,000 transfer fee per transferee; transfer certificates issued within 30 days of fully executed transfer.
• New applicants restriction: credits shall not be available to owners who submit an application after May 15, 2016 (2023 in the amended version). Existing reserved allocations are protected and cannot be reduced by legislative action for those with allocations reserved by May 15, 2016 (2023).
• Effective date: immediate; applicable to 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