Bill > HB452

This bill extends and enhances the state income tax credit for qualified rehabilitation expenses of certified historic properties, allowing for a higher annual credit amount and extending the program's availability through December 31, 2032. A "certified historic structure" is defined as a property at least 60 years old (or 75 years old for applications after June 1, 2023) that is listed on or eligible for the National Register of Historic Places or contributes to a Registered Historic District, and is certified by the Alabama Historical Commission. "Qualified rehabilitation expenses" are costs associated with repairing or altering these structures, consistent with federal standards, excluding acquisition costs and personal labor. The bill introduces distinctions for "rural communities" (counties with less than 175,000 population) and "urban communities" (counties with over 175,000 population), and for tax years 2028 through 2032, it increases the credit percentage for qualified rehabilitation expenditures in rural communities to 30% and maintains it at 25% for urban communities, while also adjusting the minimum expenditure threshold for "substantial rehabilitation" in rural areas. The total amount of tax credits that can be reserved annually is also increased, with a higher overall cap for the extended period. The bill also clarifies that applications submitted and reservations made by December 31, 2032, will still be honored even if the rehabilitation is completed after that date, and it ensures that applications already in the review process before the bill's effective date will remain active.

Budget and Finance

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