Alabama Administrative Code › Title 460 - ALABAMA HISTORICAL COMMISSION › Chapter 460-X-25 - ALABAMA HISTORIC REHABILITATION TAX CREDIT › Section 460-X-25-.03 - Tax Credit

Current through Register Vol. 42, No. 9, June 28, 2024
(1) A tax credit
			 of twenty-five percent (25%) of Qualified Rehabilitation Expenditures is
			 available against any state income tax due that is specified in the Act for the
			 Certified Rehabilitation of Certified Historic Structures. This credit is
			 available for both income-producing buildings and owner-occupied residential
			 buildings.
(2) Rehabilitation of a
			 Certified Historic Structure shall be substantial as defined by the term
			 Substantial Rehabilitation.
(3) The
			 tax credit may be earned by the Owner of the Certified Historic Structure. The
			 Applicant shall not be permitted to request the review of another property in
			 the place of the property contained in the Application.
(4) Eligible expenditures include reasonable
			 expenses and costs expended in the Certified Rehabilitation of a Certified
			 Historic Structure as defined by the term Qualified Rehabilitation
			 Expenditures. Eligible expenditures do not include: the cost of acquiring any
			 interest in a Certified Historic Structure or its Property; any expenditure
			 attributable to the enlargement of an existing building; and site work
			 expenditures, including any landscaping, sidewalks, parking lots, paving,
			 decks, outdoor lighting remote from the building, fencing, retaining walls, or
			 similar expenditures because they are not considered made in connection with
			 the rehabilitation of a Certified Historic Structure.
(5) Tax credits granted to a partnership, a
			 limited liability company, S Corporations, trusts, or estates shall be claimed
			 at the entity level and shall not pass through to the partners, members, or
			 owners.
(6) A copy of the completed
			 Certificate shall be filed with the taxpayer's Alabama state tax return. The
			 entire tax credit must be claimed by the taxpayer for the taxable year in which
			 the certified rehabilitation is placed into service. Where the taxes owed by
			 the taxpayer are less than the tax credit, the taxpayer shall be entitled to
			 claim a refund for the difference.
(7) All or any portion of the tax credits
			 under this Act shall be transferable and assignable, subject to any notice and
			 verification requirements to be determined by the Department, without the
			 requirement of transferring any ownership interest in the Qualified Structure.
			 Any tax credits transferred shall be at a value of at least eighty-five percent
			 (85%) of the present value of the credits. However, once a credit is
			 transferred, only the transferee may utilize such credit and the credit cannot
			 be transferred again. The transferee of the tax credits may use the amount of
			 tax credits transferred to offset any income tax due under Chapter 18 of Title
			 40.
(8) For the purpose of this
			 Program, dates of notification or issuance of any decisions, actions, requests
			 for information, and other correspondence by the Commission shall be in
			 writing, and the date of the notification or issuance shall be stated. The
			 notification or issuance is effective as of the stated date and not the date of
			 receipt by the Applicant.
Author:
Chloe Mercer; Lee Anne Wofford
Statutory Authority:
Act 2017-380; Act
				  2021-431.