Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-3-136 - HISTORICAL REHABILITATION TAX CREDIT › Section 810-3-136-.02 - Historic Rehabilitation Tax Credit Of 2013 - Availability, Claiming And Transferability

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 This rule sets forth guidelines and procedures to be used by the Department of
			 Revenue in the administration of the Historic Rehabilitation Tax Credit of
			 2013, as codified in Article 1 of Chapter 9F of Title 40,
Code of
			 Ala. 1975
, which provides for a tax credit under Chapters 16 and
			 18 of Title 40 to Alabama taxpayers for the rehabilitation of certain historic
			 and certain non-historic buildings in Alabama.
(2) The Owner of a Project that has been
			 issued a Tax Credit Certificate shall forward a copy of the Tax Credit
			 Certificate to the Department within 30 days from the date of issuance. If
			 there is more than one Owner of the Project, or if the Owner is a pass-through
			 entity, an Allocation Schedule must be filed with the Tax Credit Certificate.
			 Projects that have been issued more than one Tax Credit Certificate will
			 combine the credits awarded and file only one Allocation Schedule with the
			 Department. In keeping with taxpayer confidentiality, the Allocation Schedule
			 shall only be filed with the Department and should not be filed with any
			 taxpayer's tax return.
(3) Credits
			 may only be claimed by taxpayers holding a Tax Credit Certificate, a Transfer
			 Tax Credit Certificate, or a Recipient Tax Credit Certificate and by filing a
			 copy of such certificate with the taxpayer's tax return. If the tax credit is
			 passed through by a pass-through entity holding a Tax Credit Certificate or
			 Transfer Tax Credit Certificate, the pass-through entity must issue a Recipient
			 Tax Credit Certificate to each member or partner receiving a tax credit in
			 accordance with the Allocation Schedule and such certificate shall also be
			 filed with the taxpayer's tax return.
(4) A taxpayer may apply the entire tax
			 credit against the state portion of any tax imposed by Chapters 16 or 18 for
			 the taxable year in which the certified rehabilitation is placed in service.
			 Since the tax imposed by Chapter 16 includes taxes that are distributed to the
			 municipalities and counties within Alabama, in addition to the tax that is
			 retained by the state; the credit is only available to offset that portion that
			 is retained by the state. The state portion of any tax imposed with regard to
			 Chapter 16 means, for purposes of this rule, the portion of the tax to be
			 distributed to the state's general fund. Forms and instructions will be made
			 available to taxpayers to provide guidance on how to compute this credit for
			 those taxpayers subject to tax under Chapter 16.
(5) Any unused portion of the taxpayer's
			 credit cannot be refunded, but may be carried forward for up to 10 additional
			 years from the year in which the certified rehabilitation Project is placed in
			 service.
(6) On or after the date
			 the Tax Credit Certificate is issued to the Project, any partner, member, or
			 Owner of the Project may transfer all or part of their credit. Once a credit is
			 transferred, only the Transferee or Transferees, or their partners or members,
			 may utilize such credit and the credit cannot be transferred again.
(7) Prior to the effectiveness of a transfer,
			 the Transferor shall file a Transfer Statement with the Department along with a
			 copy of the draft or final Transfer Agreement(s), a copy of the Tax Credit
			 Certificate and a $1,000 fee for each Transferee listed on the Transfer
			 Statement. If the Transferee is a pass-through entity, the Transferee must
			 provide an Allocation Schedule with the Transfer Statement. Unless previously
			 filed, the Transferor shall also file a copy of the executed Transfer Agreement
			 with the Department no later than 30 days after the agreement has been
			 executed. The Department shall issue a Transfer Tax Credit Certificate to each
			 Transferee for the amount listed on the Transfer Statement within 30 days after
			 receipt of the executed Transfer Agreement. If the amount of the Transferee's
			 tax credit listed in the agreement is different from the Transfer Statement
			 originally filed with the Department, the Transferor shall submit an amended
			 Transfer Statement with the executed agreement.
(8) The aggregate amount of the tax credit
			 taken or utilized by all of the Owners, partners, members of a Project or
			 Transferees cannot exceed the amount of credit awarded on the related Tax
			 Credit Certificate or Transfer Tax Credit Certificate, as applicable.
Authors:
Kelly Graham, Neal Hearn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5);
				  Title 40, Chapter 9F, Article 1.