HB345 Alabama 2017 Session

Summary

Primary Sponsor

Victor Gaston

Republican

Session

Regular Session 2017

Title

Historic buildings, income tax credit authorized for rehabilitation of qualified structures, standards by Historical Commission, rules, approval by Historic Tax Credit Evaluating Committee estab., limitations, expiration

Summary

HB345 creates a new Alabama historic preservation income tax credit to encourage rehabilitation of certified historic structures, reviving a program that expired in 2016.

What This Bill Does

It provides a 25% state income tax credit for qualified rehabilitation expenditures on certified historic structures. There are caps: up to $5,000,000 of credit per project for non-residential properties and up to $50,000 for certified historic residential structures, with the credit to be claimed in the year the rehabilitation is placed in service. The program establishes a Historic Tax Credit Evaluating Committee and a Historic Preservation Income Tax Credit Account to reserve and allocate credits from 2018 through 2027, with a total reserved amount not to exceed $200 million. Credits may be transferred to other taxpayers at 85% of their value and used to offset Alabama taxes; the transfer process includes forms, fees, and audit/recapture rules, and the Alabama Historical Commission and Department of Revenue oversee administration and reporting.

Who It Affects

• Owners or developers of certified historic structures in Alabama who undertake rehabilitation projects and may receive a 25% tax credit (subject to caps) if the project is placed in service.
• Taxpayers who can claim the credit or investors who purchase transferable credits to offset Alabama income taxes (transferees), subject to the 85% value rule and transfer requirements.

Key Provisions

• Credit amount and caps: a 25% income tax credit for qualified rehabilitation expenditures against Alabama income tax, with per-project caps of $5,000,000 for non-residential properties and $50,000 for certified historic residential structures; credits must be claimed in the year the rehabilitation is placed in service and may be refundable if they exceed tax due.
• Administration and transfers: establishes the Historic Tax Credit Evaluating Committee to review, rank, and allocate credits; creates the Historic Preservation Income Tax Credit Account funded from Education Trust Fund sales tax revenue; credits are transferable at 85% of value, with transfer rules, required documentation, and audit/recapture provisions; transferees may use credits to offset Chapter 18 taxes.

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