HB281 Alabama 2021 Session

Summary

Primary Sponsor

Victor Gaston

Republican

Co-Sponsors

Napoleon BracyChip BrownAdline ClarkeSteve ClouseMerika ColemanTerri CollinsBarbara DrummondDavid FaulknerJoe FaustDanny GarrettMike JonesSteve McMillanChris PringleNeil RaffertyConnie C. RoweMatt SimpsonKyle SouthShane StringerMargie Wilcox

Session

Regular Session 2021

Title

Income tax, historic structures, qualified rehabilitation, tax credits extended to 2029, admin. by Historical Commission, Secs. 40-9F-33, 40-9F-36 am'd.

Summary

HB281 extends Alabama's Historic Tax Credit for rehabilitating historic structures through 2027, tightens use rules for 2023-2027, and creates a committee to manage and rank credits.

What This Bill Does

Extends the credit through 2027 and, for 2023 through 2027, limits credits to projects with commercial or business use and blocks credits for Disqualifying Use. Defines key terms, sets rehabilitation standards, and requires an application, rehabilitation plan, cost estimates, and specified timelines (start within 18 months, complete within 60 months). Allows credits to be transferred (with an 85% floor), imposes fees and reporting, and establishes the Historic Tax Credit Evaluating Committee to review, rank, and guide allocations.

Who It Affects

• Property owners or developers rehabilitating qualified historic structures who must meet standards, submit plans, follow timelines, and apply for and receive tax credit reservations and certificates.
• Tax credit transferees and investors who may claim the credit against Alabama taxes, subject to transfer rules, value floor, and certificate issuance.

Key Provisions

• Extends the historic rehabilitation tax credit through 2027 and restricts credits for tax years 2023-2027 to projects used for commercial or business purposes, with no credits for Disqualifying Use.
• Defines key terms: Certified Historic Structure, Certified Rehabilitation, Certified Historic Residential Structure, Disqualifying Use, Substantial Rehabilitation, and related roles (Owner, Commission, Department).
• Outlines substantial rehabilitation rules, including pre-approval requirements, rehabilitation plans, cost estimates, and phased milestones (start within 18 months, 20% of costs; reach 70% within 36 months; complete within 60 months).
• Sets credit calculation and caps: state portion equals a percentage of qualified expenditures; per-project caps (higher cap for non-residential; lower cap for certified historic residential structures); annual and total reservation limits and caps (with specific limits and rollovers).
• Imposes a transferability framework: credits can be transferred at least 85% of present value; transfers require a formal transfer statement and agreements; transferees claim credits on their tax returns and may receive refunds if taxes owed are less than the credit.
• Creates the Historic Tax Credit Evaluating Committee to rank projects and allocate credits; committee includes state officials and legislators, with guidance from the Alabama Historical Commission; rules consider community value, ROI, geographic distribution, and local support.
• Requires the Alabama Department of Revenue and Commission to provide audits, cost certifications, and appraisals; original owner remains liable for improper credits.
• Provides for annual reporting on program activity and impact, and directs funding for processing and administration through related fees collected by the Commission.
• Establishes special set-aside: 40% of annual credits reserved for projects in counties with population not exceeding 175,000; provisions for reallocation if unused.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation