Alabama Administrative Code › Title 460 - ALABAMA HISTORICAL COMMISSION › Chapter 460-X-23 - ALABAMA HISTORIC REHABILITATION TAX CREDIT › Section 460-X-23-.10 - Taking The Tax Credit

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 The Alabama Department of Revenue (Department) shall grant a tax credit against
			 any state tax due which is specified in the Act to an Owner holding a Tax
			 Credit Certificate issued by the Commission, or its partners, members, or
			 multiple owners as set forth in the portion of the Tax Credit Certificate
			 completed by the Applicant, or one or more transferees holding a Tax Credit
			 Certificate issued by the Department in accordance with Section
			 40-9F-4(e).
			 This credit shall be applicable to tax due and payable to the Department by the
			 owner, transferee, partner, or member under Title 40, chapters 16 and 18, Code
			 of Alabama 1975, in the amount stated in the Tax Credit Certificate. The
			 Department shall apply such credits claimed by the taxpayers only against the
			 portion of such taxes retained, deposited or distributed to the State of
			 Alabama. To receive the credit, the Owner of the completed Project, transferee,
			 partner or member will file the Tax Credit Certificate with the taxpayer's
			 Alabama state tax return. For the purposes of these regulations, a Project's
			 completion will be the date that it is placed in service. For the purpose of
			 these regulations, placed in service generally means that all work described in
			 an approved Part B Application has been completed, and the appropriate work has
			 been completed that would allow occupancy of either the entire building or some
			 identifiable portion of the building. A Certificate of Occupancy is one means
			 of verifying the placed in service date for the entire building (or part
			 thereof).
(2) The Department shall
			 have the right to audit and reassess any credit improperly obtained by the
			 Owner. This right extends to the Owner initially awarded the tax credit
			 certificate, and not any subsequent transferee of the tax credit certificate or
			 person to whom tax credits have been passed through pursuant to Section
			 40-9F-4(d).
(3) The entire tax credit may be taken in the
			 taxable year in which the Certified Rehabilitation is placed in service. If
			 taxes owed by the taxpayer are less than the credit, the amount of the credit
			 may be carried forward for up to ten (10) additional years. The taxpayer shall
			 not be entitled to claim any unused credits as a tax refund.
(4) Tax credits granted to a partnership,
			 limited liability company, or multiple Owners shall be passed through to the
			 partners, members or Owners, including any not-for-profit entity which is a
			 partner, respectively pro rata or pursuant to an executed agreement among the
			 partners, members, or Owners who have an alternate distribution method, as
			 indicated on the Tax Credit Certificate to be completed by the Applicant. Any
			 partner, member or Owner to whom the credits were passed-through may transfer
			 or assign all or part of their credits to one or more transferees by providing
			 the completed Tax Credit Certificate to the Department and otherwise satisfying
			 the requirements under Section
			 40-9F-4(e).
(5) Recapture of any of the credit shall
			 apply against the taxpayer who utilizes the credit, and any required
			 adjustments to basis due to recapture shall be governed by Title 26, Section 50
			 of the Internal Revenue code.
Authors
: Chloe Mercer, David Schneider, Jennifer
				  Bailey
Statutory Authority
: Act 2013-241;
				  2014-452.